Trent Considers First Bonus Issue Amid Analyst Caution
Trent bonus issue announcement today; analyst against 'fresh buying'
Business Standard
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Trent, a Tata Group company, is set to announce its first-ever bonus share issuance and dividend during its Q4 FY26 earnings release. Despite a recent share price increase, analyst Virat Jagad advises against fresh buying, citing overbought conditions and resistance levels around ₹4,400–4,500.
- 01Trent's board will consider its first bonus issue and dividend on Wednesday.
- 02The stock rose 2.45% to ₹4,498 amid a 7.5% increase since the bonus consideration announcement.
- 03Analyst Virat Jagad recommends avoiding fresh buying due to overbought conditions.
- 04Trent's share price has increased 37% from its 52-week low of ₹3,275.50.
- 05Domestic brokerage Motilal Oswal projects 19% revenue growth for Trent through FY28.
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Trent, a retail company under the Tata Group, is expected to announce its first bonus share issuance and dividend during its Q4 FY26 earnings report on Wednesday. The stock has seen a 2.45% increase today, reaching ₹4,498, following a 7.5% rise since the company disclosed the consideration of a bonus issue last week. Despite this uptick, analyst Virat Jagad from Bonanza cautions against fresh buying, highlighting that the stock is testing a critical resistance zone between ₹4,400 and ₹4,500. He notes that the relative strength index (RSI) is nearing 70, indicating potential overbought conditions. The share price has surged 37% from its 52-week low of ₹3,275.50 recorded on March 30, 2026, although it has declined 17.1% over the last year, underperforming the Nifty50 index. Additionally, Motilal Oswal Financial Services forecasts a 19% CAGR growth in Trent's standalone revenue and EBITDA from FY25 to FY28, driven by retail expansion.
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The announcement of a bonus issue and dividend could positively affect shareholder sentiment and market perception of Trent.
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