Trent Ltd have declined by about 16% from its 52-week high on the NSE. That’s hardly surprising considering that the second covid wave is expected to stall its recovery.
Localized lockdowns and restrictions across several states are expected to keep Trent’s near-term outlook weak.“This would weigh on FY22 revenues/margins, leading to a 48% cut in FY22 Ebitda (minimal change in FY23); we expect heightened volatility over the next few months or quarters," said analysts from Jefferies India Pvt.
Ltd in a report on 1 May. Ebitda is earnings before interest, tax, depreciation and amortization.This comes at a time when Trent’s recovery was progressing consistently every quarter after business operations were hit in 2020 owing to the lockdown.