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  1. Trent Q4 results: Check earnings preview, dividend and key technical levels

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Trent Q4 results: Check earnings preview, dividend and key technical levels

Upstox

3 min read | Updated on April 29, 2025, 10:14 IST

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SUMMARY

On April 28, Trent shares signaled weakness by closing below their 21-day and 50-day moving averages, a move followed by a bearish candlestick pattern. However, the broader structure of the stock remains range-bound between ₹5,750 and ₹4,700. With earnings on the horizon, the options market is expecting a potential 11% swing in either direction.

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A Long Straddle involves buying both an at-the-money (ATM) call and put option with the same strike price and expiry date.

A long straddle involves buying both an at-the-money (ATM) call and put option with the same strike price and expiry date.

Trent, the parent company of Zudio and Westside, will announce its results for the March quarter (Q4FY25) today. The company is expected to report a mixed set of results, with double-digit revenue growth but a possible decline in net profit.
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According to experts, the Tata Group-owned company could report standalone revenue growth of 31-35% YoY between ₹4,210 crore to ₹4,370 crore. Meanwhile, Trent's net profit could fall 41-43% to ₹340-385 crore. Trent's net profit was ₹654 crore in the March quarter of FY24, aided by a one-time profit component.

During the March quarter, Trent crossed the 1,000 store portfolio milestone, including 248 Westside stores, 765 Zudio stores and 30 stores under other lifestyle concepts. During the quarter, the company opened 132 Zudio and 13 Westside stores.

Investors will be looking forward to key performance metrics such as like-for-like sales growth and management commentary on the overall demand outlook, particularly in urban areas. Dividend announcement if any will also be tracked closely.

Ahead of fourth quarter result announcement, Trent shares are trading 1.4% higher at ₹5,283.

Technical View

Shares of Trent sustained its bearish momentum within the downward trending channel and are currently trading below all the crucial exponential moving averages (EMAs). The stock has failed to reclaim its 200-day EMA.

However, it is important to note that the stock is currently placed around the crucial support zone of ₹4,900 and ₹5,100. Additionally, the stock is broadly consolidating between ₹5,750 and ₹4,700. Within this range, the stock may remain range-bound and a break above or below this range can provide further directional clues.

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Options outlook

As of April 28, Trent's open interest and at-the-money straddle prices of May 29 expiry suggest a potential ±11% price swing from its closing price of ₹5,209. Before exploring possible trading strategies, let’s examine Trent’s historical price behaviour around its earnings announcements.
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Options strategies for Trent

With the options market pricing in a potential ±11% move before the May 29 expiry, traders can explore Long Straddle and Short Straddle strategies to capitalize on the expected volatility.

A Long Straddle involves buying both an at-the-money (ATM) call and put option on Trent with the same strike price and expiry date. This strategy benefits from significant price swings exceeding ±11% in either direction, making it ideal for traders anticipating high volatility.
Conversely, if you expect Trent to remain range-bound, moving less than ±11% before the May 29 expiry, a Short Straddle could be a suitable approach. This strategy involves selling an ATM call and put option with the same strike price and expiry, aiming to profit from declining volatility if the stock remains within the projected range.

Meanwhile, traders seeking a bullish or bearish approach can explore directional spreads, which provide a risk-defined alternative to simple option buying.

For a bullish outlook, a bull call spread involves buying a call option while simultaneously selling a higher strike call with the same expiration, reducing cost while capping potential gains.
Conversely, for a bearish stance, a bear put spread consists of buying a put option and selling a lower strike put, balancing risk and reward.

Disclaimer: Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. The information is only for educational purposes. We do not recommend any particular stock, securities and strategies for trading. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing.
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Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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