Tag Retail Growth

Trent Ltd
Trent Ltd Revenue Jumps 28% YoY to ₹4,334 Cr – Growth Led by Zudio & Westside Expansion

Business and Industry Overview: 

Trent Limited is a retail company and part of the Tata Group. It is based in Mumbai, India. The company runs stores that sell clothes, footwear, accessories, and groceries under popular brands like Westside, Zudio, Star Bazaar, and Utsa. 

The company was first started as Lakme Limited on December 5, 1952. At that time, it was in the business of making and selling cosmetics, perfumes, and toiletries. In 1998, Lakme decided to exit the cosmetics business and move into the apparel retailing business. This was because India had very few strong fashion brands at that time. 

To begin its new journey, in March 1998, Lakme bought Littlewoods International (India) Pvt. Ltd. from a UK-based company. This company was already selling ready-made clothes. Also, Lakme Exports Ltd., a part of Lakme, merged with Littlewoods, and the new name became Trent Ltd (from January 1, 1998). Later, on July 1, 1998, Trent Ltd merged fully with Lakme, and the company was officially renamed Trent Limited. 

Trent focuses on its own-brand products, quick response to new fashion trends, and keeping prices stable. This strategy helps the company grow fast and stay unique in India’s lifestyle and fashion market. 

Latest Stock News: 

Trent Limited, the retail arm of the Tata Group, has recently seen big changes in its stock price. This happened after it shared its latest financial results. In the fourth quarter of FY25, the company’s revenue grew by 28% and reached ₹4,334 crore. Last year in the same quarter, it was ₹3,381 crore. For the full year ending March 31, 2025, Trent’s revenue was ₹17,624 crore, showing a strong 39% increase compared to ₹12,669 crore the year before. Even though these numbers are good, they were still lower than Trent’s 5-year average growth rate of 36%. Because of this, the stock price fell by 18% on April 7, 2025 — the biggest drop since March 2020. Experts say this fall happened because people are now worried that Trent’s fast growth may slow down. Still, Trent has done very well in the long term. Its sales and profits have grown strongly for many quarters. Net sales grew by 37.18% every year, and operating profit rose by 42.66%. Net profit also grew by 42.83% in the latest report. Trent opened 14 new Westside stores and 62 Zudio stores, including its first international Zudio store in Dubai. The company’s return on capital is 28.9%, which is very strong. But the stock price looks a bit high when compared to the company’s value. In the past year, the stock gave a return of 20.38%, and profits went up by 77.2%. Trent’s market value is ₹1,68,521 crore, and it holds 28.48% of the total retail market. Big investors trust the company, and they hold 36.98% of its shares. Investors are advised to keep an eye on Trent’s future performance to see if it can continue to grow strongly. 

Potentials: 

Trent Limited, the retail arm of the Tata Group, has laid out strong plans for future growth both in India and abroad. One of its key goals is to expand internationally, starting with its first Zudio store in Dubai, which will mainly target Indian customers living there. Back in India, Trent is focusing heavily on growing its Zudio brand, which sells affordable fashion and is very popular among young people. The company plans to open many more Zudio stores across the country. Another big part of Trent’s plan is the Star Bazaar supermarket chain. Trent aims to add around 20 to 25 new Star Bazaar stores in FY25, which will bring the total to nearly 90 stores. This will help them reach more customers in the grocery and daily needs market. Trent is also focusing on selling more private label (in-house) products in its stores. These are products made and sold only by Trent, which helps increase profits and gives customers unique choices. Overall, the company’s plans show that it wants to grow fast, serve more people, and become a bigger name in retail, not just in India, but around the world. 

Analyst Insights: 

  • Market capitalisation: ₹ 1,69,324 Cr. 
  • Current Price: ₹ 4,763 
  • 52-Week High/Low: ₹ 8,346 / 3,801 
  • Stock PE Ratio: 114 
  • Dividend Yield: 0.06% 
  • Return on Capital Employed (ROCE): 23.8% 
  • Return on Equity (ROE): 27.2% 

Trent Ltd. is a retail company. It is part of the Tata Group. It is doing very well in the retail market in India. The company is growing fast. Its revenue has grown at 68.4% every year in the last 3 years. This is because of more stores and more customer demand. Its main brands are Westside and Zudio. The company also made good profit. Net profit grew 83.3% in the last one year. This shows good growth and better operations. The company is now more profitable. In 2013, it had almost zero profit margin. But now, in 2024, the operating profit margin is 16%. This is a big improvement. The company is also using money well. Return on Equity (ROE) is 27.2%, and Return on Capital (ROCE) is 23.8%. These numbers show that the company is giving good returns to its investors. The company has also improved its cash flow. It reduced working capital days from 42.4 to 15.1 days. This means the company is using its money faster and better. It also reduced its debt-to-equity ratio, which means it has less debt now. This makes the company safer. Promoters hold 37.01% shares, and none of the shares are pledged. This shows strong support from promoters and good governance. But there is one big problem. The stock price is very high. P/E ratio is 114x and P/B ratio is 36x. This means the stock is expensive. It is costlier than other retail companies. Most of the good news is already in the price. If the company does not grow as expected, the stock may fall. Also, a big part of recent profit is from Other Income, not from the main retail business. This may not happen every year. 

So, the company is strong and growing. It is good for the long term. But right now, the stock price is too high. It is not the best time to buy. If you already have the stock, keep it. If you want to buy, wait for the price to come down. This is why the recommendation is HOLD. 

Avenue Supermarts Ltd
DMart Stock Analysis: Growth, Challenges and Future Prospects in India’s Retail Boom

Business and Industry Overview: 

Avenue Supermarts Ltd., also known as DMart, is a supermarket chain in India. It was started by Radhakishan Damani in 2000. The first DMart store opened in Powai, Mumbai, in 2002. DMart sells many products, like groceries, clothes, home goods, and electronics, all at low prices. At first, DMart grew slowly. By 2010, it had 29 stores in Maharashtra and Gujarat. By 2013, it had 65 stores, including stores in Hyderabad and Bangalore. DMart became popular for having big stores. Most of their stores are 30,000 sq ft or larger. This helped them sell many products in one place. In 2016, DMart started DMart Ready, a service for online grocery shopping. In 2017, DMart became a public company. It listed its shares on the stock market. This allowed people to buy shares in the company. By 2022, DMart had more than 300 stores. The company has stores in many states, like Maharashtra, Gujarat, Andhra Pradesh, and Karnataka. As of 2024, DMart has 381 stores in 12 states across India. The company employs about 14,000 permanent workers and 60,000 temporary workers. DMart is successful because it sells products at low prices and runs large stores efficiently. It is now one of the biggest supermarket chains in India. 

India’s retail industry is growing very quickly. It is one of the largest and fastest-growing retail markets in the world. Many companies from other countries are interested in coming to India because of its huge number of customers. The retail sector makes up over 10% of India’s economy and is expected to grow even more in the future. As more people in India are earning money and spending more, they are buying more products. This is increasing the demand for all kinds of products, like groceries, clothes, and electronics. At the same time, new shopping malls are being built. Around 60 new shopping malls are expected to open from 2023 to 2025, which will add 23.25 million sq. ft of shopping space across India. There are also new ways of buying products. For example, banks and financial companies are helping people buy expensive products by offering easy credit. This means people can pay in installments over time. E-commerce (online shopping) has also become very popular. In 2023, e-commerce companies raised US$ 2.44 billion to help them grow their business. India is a good place for foreign companies to invest. The country has a lot of resources, cheap labor, and many business opportunities. Big companies like Subway are planning to expand their businesses in India. Subway aims to double the number of its stores in India, from 850 to 1,700 in the next 5 to 6 years. The Indian government is also making it easier for foreign companies to set up businesses in India. They have rules that allow 100% foreign investment in certain types of businesses. These changes will make it easier for foreign companies to do business in India and will help create jobs. The retail industry in India employs around 35 million people and is expected to create 25 million new jobs by 2030. This shows that the retail sector in India is not only growing but also helping many people find jobs. The future looks bright for the retail industry in India. DMart is very popular in India because it keeps things simple and smart. It offers low prices, so many people prefer shopping there. The stores are bigger than most, giving customers more choices. DMart opens stores close to each other, usually within 50 km, which helps it save money on delivery and get products to customers faster. DMart also owns a lot of its stores or makes long-term rental agreements, so it saves on rent. It pays suppliers quickly, usually in 10 days, which helps it get discounts. Instead of hiring many full-time workers, DMart hires contract workers to manage costs. The company is careful with its growth, making sure each store is successful before opening more. DMart also sells a lot of products but keeps only a few options in each category, which helps sell things faster and keep shelves organized. These smart choices help DMart stay efficient, keep costs low, and keep growing. 

Latest Stock News: 

DMart’s share price has gone up by 6%, reaching ₹3,876.90. This happened because more people were buying the stock. The main reason for the rise is that India’s retail inflation dropped to 3.61%. When inflation is lower, people can spend more on things like food, clothes, and other products. This helps stores like DMart make better profits. 

In its latest earnings report, DMart showed that sales grew well, but the profits didn’t grow as expected. This was because the company gave more discounts and faced some problems selling clothes and other general products. These areas are getting more competition, which makes it harder for DMart to make big profits. 

DMart’s stock price has gone up by 6% recently, showing that investors are confident in the company. In March 2025, the stock gained 14%, which is a good sign, especially since the overall market has not been doing as well. The company is financially strong because it has no debt. This is important because it means DMart can continue growing without worrying about borrowing money. The recent drop in inflation to 3.61% is also good for DMart. When inflation is lower, people are more likely to buy things they don’t always need, which helps DMart’s sales and profits. 

Potentials: 

DMart is also going through a change in leadership. A new CEO will start in 2026, which could bring changes to how the company works. Even though the stock price has risen recently, DMart’s shares haven’t done as well as the market in the past six months. So, while it’s doing better now, there are still some challenges ahead. 

DMart has big plans for the future. The company wants to keep growing by opening 40-60 new stores every year. In the future, this number could go up to 70 stores a year as it builds better systems. The new stores will be in clusters, meaning several stores will be built close to each other in the same area. This will help DMart become stronger in places where it already has stores, while also slowly moving into new areas. 

Besides opening more stores, DMart is also focusing on its online platform, DMart Ready. The company plans to grow this service in big cities first, instead of expanding to too many places at once. DMart wants to make sure deliveries are faster, aiming to get products to customers in under 12 hours in city areas. Although home delivery is a big part of growth, DMart is working on improving its online shopping experience and making it profitable. 

Investors should focus on DMart’s business performance, how it is run, and whether the stock is reasonably priced before deciding to invest in the company. 

Analyst Insights: 

  • Market capitalisation: ₹ 2,48,830 Cr. 
  • Current Price: ₹ 3,824 
  • 52-Week High/Low: ₹ 5,485 / 3,337 
  • Stock P/E: 91.5 
  • Dividend Yield: 0.00 % 
  • Return on Capital Employed (ROCE): 19.4 % 
  • Return on Equity: 14.5 % 

Although DMart faces competition from both big companies like Reliance and smaller online platforms like Zepto, it has a solid plan to keep growing. The company continues to open new stores and improve its products. Also, with a new CEO starting soon, there may be new ideas that can help DMart move forward. Even though it faces challenges in the short term, like giving more discounts and managing bigger stores, its strong financial position and growth plans make it a good long-term investment. For now, it’s a safe bet for long-term investors, but those looking for quick gains might want to be cautious because of the ongoing competition.