Trent Ltd, a Tata Group company, has transformed from the legacy of Lakmé into one of India’s most powerful and agile retail enterprises. Born in 1998 following the sale of Lakmé to Hindustan Unilever, the company used the proceeds to launch its flagship Westside store in Bangalore. Fast-forward to 2025, and Trent operates an ecosystem of retail brands that are shaping urban and semi-urban consumer fashion across the country.
What Are Trent’s Core Retail Brands?
Trent is known for its focused and scalable brand portfolio, which includes:
- Westside: Mid-premium lifestyle retail brand offering in-house apparel and lifestyle products. Currently operates 248 stores.
- Zudio: Youth-targeted, fast fashion chain known for affordability. Boasts 765 stores and growing.
- Utsa: A contemporary ethnic wear brand operating through standalone stores and within Westside.
- Star Bazaar: A joint venture with Tesco offering groceries and daily essentials through 78 outlets.
- Zara India & Massimo Dutti: Operated under a JV with Inditex, comprising 23 Zara and 3 Massimo Dutti stores.
Together, these brands give Trent a strong hold over the value, mass-premium, and lifestyle fashion segments.
How Has Trent Performed Financially?
As of May 26, 2025:
- Market Cap: ₹1,96,549 crore
- Current Price: ₹5,529
- P/E Ratio: 128.13
- Book Value: ₹154
- Dividend Yield: 0.09%
- ROCE: 31.7%
- ROE: 32.2%
Source: Screener.in
Trent’s performance has been driven by high-margin private labels, strong Same-Store Sales Growth (SSSG), and rapid expansion of Zudio into tier 2 and 3 cities.
How Does Trent Compare to Its Retail Peers?
Here’s how Trent stacks up:
| Company | CMP (₹) | P/E | Market Cap (₹ Cr) | Div. Yld (%) | NP Qtr (₹ Cr) | Qtr Profit Var (%) | Sales Qtr (₹ Cr) | Qtr Sales Var (%) | ROCE (%) |
|---|---|---|---|---|---|---|---|---|---|
| Avenue Supermarts | 4,137.00 | 99.43 | 2,69,208.32 | 0.00 | 550.79 | -2.19 | 14,871.86 | 16.86 | 18.02 |
| Trent Ltd | 5,529.00 | 128.13 | 1,96,548.95 | 0.09 | 311.60 | 18.57 | 4,216.94 | 27.88 | 31.71 |
| Vishal Mega Mart | 125.25 | 91.68 | 57,922.60 | 0.00 | 115.11 | 88.03 | 2,547.89 | 23.15 | 13.11 |
| Brainbees Solutions | 375.45 | – | 19,573.63 | 0.00 | -14.74 | 70.13 | 2,172.31 | 14.32 | -4.00 |
| Medplus Health | 977.00 | 88.35 | 11,694.05 | 0.00 | 45.87 | 234.57 | 1,561.45 | 8.32 | 6.66 |
| Redtape | 145.50 | 47.30 | 8,043.35 | 0.34 | 73.07 | 20.14 | 664.57 | 7.61 | 29.27 |
| Ethos Ltd | 2,771.00 | 70.46 | 6,783.53 | 0.00 | 22.75 | 8.18 | 311.32 | 23.29 | 13.00 |
Among peers, Trent continues to impress with the highest ROCE and ROE, reflecting efficient capital deployment and profitability. However, its high P/E ratio reflects a premium valuation.
What Recent News Should Investors Know?
Q4 FY25 Earnings:
- Net profit came in at ₹311.6 crore, down 56.2% YoY due to expansion costs and promotional expenses.
- Revenue rose by 27.88% YoY to ₹4,216.94 crore.
Source: Retail Economic Times
Dividend Announcement:
- Declared a final dividend of ₹5/share for FY25, a 500% payout, highest in 9 years.
Expansion Plans:
- Zudio continues to dominate Trent’s expansion roadmap, with the brand entering numerous tier-2 towns.
Analyst Outlook:
- Target prices range from ₹5,900 to ₹6,900 as per major brokerages.
Source: Business Today
What Are the Strengths and Weaknesses of Trent?
Strengths:
- High brand recall across formats
- Scalable private label strategy
- Strong ROE and consistent growth
- Efficient supply chain and cost control
Challenges:
- Premium valuation may limit upside
- Thin margins in Zudio expansion phase
- Vulnerable to shifts in discretionary spending
Who Might Consider Investing in Trent?
More Suitable For:
- Investors seeking exposure to Indian retail consumption
- Long-term holders targeting scalable, high-ROE companies
Less Suitable For:
- Value investors avoiding high P/E stocks
- Investors focused on dividend income
What Does the Road Ahead Look Like?
With India’s consumption story intact and organized retail gaining share, Trent is set to remain a significant beneficiary. The company is leveraging Tata Group synergies and expanding aggressively while maintaining margin discipline.
However, the next few quarters will test its ability to manage growth without compressing margins, especially as it scales into price-sensitive markets.
Final Thought:
Trent Ltd has positioned itself as a major force in Indian retail. Its rapid scale, smart branding, and Tata Group backing give it a competitive edge, but investors should balance the growth narrative with valuation risks. As always, do your due diligence and align with your own financial goals.
Disclaimer: This article is for informational purposes only. Investors should conduct their own research or consult a financial advisor before making any investment decisions.
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