1. 🧠 At a Glance
Trent Ltd, part of the Tata Group, has quietly turned into India’s most profitable fashion retailer. With 1,000+ fashion stores (Westside + Zudio), ROE of 30%, and a 72.5% 5-year profit CAGR, it’s leaving even DMart sweating. But with a PE of 133x, the question is — are you buying clothes or just paying for the brand hype?
2. 🎬 Introduction with Hook
While every other Tata company is either in steel, salt, or semiconductors — Trent is out here selling T-shirts and still delivering Tata-level alpha.
Westside? A boomer classic.
Zudio? Gen Z’s budget obsession.
Utsa? Ethnic drip.
Samoh? Occasional wedding flex.
And now with Booker, Fiora, and JVs with MAS, Trent is no longer just a fashion play — it’s becoming the retail infrastructure backbone of India. And the market? It’s rewarding it like a Louis Vuitton IPO. 👜📈
3. 🏭 Business Model (WTF Do They Even Do?)
Trent has more fashion personalities than Ranveer Singh:
- Westside: Full-format mid-premium fashion chain (~230+ stores)
- Zudio: Fast-fashion value chain with insane rollout speed (~600+ stores)
- Star Bazaar: Grocery retail in JV with Tesco
- Booker India: B2B cash-and-carry stores
- Fiora Online: Backend logistics/tech arm (e-comm infra)
- Joint Ventures:
- Trent MAS: Apparel sourcing & manufacturing
- Trent Hypermarket: Star Bazaar grocery JV
✅ End-to-end control — from design to retail floor
✅ Private-label focused — no royalty nonsense
✅ Capex-light Zudio rollout — 250+ stores added in just 2 years
They don’t sell brands. They ARE the brand.
4. 💰 Financials Overview – Profit, Margins, ROE, Growth
Trent has grown like it’s on steroids laced with FabIndia DNA.
| Metric | FY20 | FY23 | FY25 | CAGR |
|---|---|---|---|---|
| Revenue (₹ Cr) | 3,486 | 8,242 | 17,135 | 38% |
| Net Profit (₹ Cr) | 106 | 394 | 1,534 | 72.5% |
| ROE | 3.5% | 12.5% | 30.1% | ↑↑ |
| OPM | 15% | 14% | 16% | Stable, but improving |
✅ 3-year Profit CAGR: 237%
✅ FY25 EPS: ₹43.5
✅ FY25 Net Profit Margin: 9%
This is what “scale with sanity” looks like.
5. 📊 Valuation – Is It Cheap, Meh, or Crack?
Let’s just say: you’re not buying Zudio clothes at Zudio’s PE.
| Metric | Value |
|---|---|
| CMP | ₹5,364 |
| Market Cap | ₹1.90 Lakh Cr |
| TTM EPS | ₹43.5 |
| PE (TTM) | ~123x |
| Price / Book | 34.9x |
| PEG | 1.7 (fair-ish) |
| Dividend Yield | 0.09% (read: LOL) |
🔍 Fair Value Range (EduCalc™)
Assuming 30–35x normalized PE on FY26E EPS of ₹55–₹60:
FV Range = ₹1,650 – ₹2,100
So… the current price? 2.5x even our crack-adjusted bull case.
6. 🍿 What’s Cooking – News, Triggers, Drama
🧨 Trent is sprinting:
- Crossed 1,000 fashion stores in Mar 2025
- JV with MAS Amity for in-house manufacturing
- Star Bazaar may see a Tesco-driven scale-up
- Sold stake in Massimo Dutti JV — focusing on own brands
- Accepted buyback in Aug 2024
- Launched WESNESS — fitness + fashion initiative (?!)
Upcoming?
- Zudio’s entry into Tier 2–3 Bharat
- Possible demerger or listing of backend infra (Fiora?)
- Maybe even a global expansion tease?
7. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| FY25 Key Metrics | Value |
|---|---|
| Net Worth | ₹5,462 Cr |
| Borrowings | ₹2,237 Cr |
| Debt/Equity | 0.41x |
| Cash & Equivalents | ₹1,011 Cr |
| Total Assets | ₹9,420 Cr |
No debt problem here. Trent isn’t dressing up its balance sheet with leverage.
8. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net |
|---|---|---|---|---|
| FY23 | ₹595 Cr | -₹103 Cr | -₹491 Cr | ₹1 Cr |
| FY24 | ₹1,349 Cr | -₹508 Cr | -₹629 Cr | ₹211 Cr |
| FY25 | ₹1,661 Cr | -₹923 Cr | -₹694 Cr | ₹44 Cr |
CFO is compounding nicely — Zudio stores turning profitable in <18 months, fueling strong ops cash.
Major cash burn is store expansion capex.
9. 📐 Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 12.5% | 30% | 30.1% |
| ROCE | 12% | 24% | 30.7% |
| OPM | 14% | 16% | 16% |
| Inventory Days | 105 | 83 | 77 |
| CCC (Cash Conversion) | 55 | 45 | 43 |
✅ ROE + ROCE = elite tier
✅ Working capital cycle = efficient
✅ Margins = expanding slowly with scale
10. 📊 P&L Breakdown – Show Me the Money
| FY25 | ₹ Cr |
|---|---|
| Sales | ₹17,135 |
| COGS & OpEx | ₹14,315 |
| EBITDA | ₹2,820 |
| EBITDA Margin | 16.5% |
| Depreciation | ₹895 |
| Interest | ₹200 |
| Other Income | ₹305 |
| PBT | ₹2,030 |
| Net Profit | ₹1,534 |
Other income matters — but core ops are strong enough now to ignore the side hustle.
11. 🧢 Peer Comparison – Who Else in the Game?
| Company | Revenue (₹ Cr) | PE | ROE | OPM |
|---|---|---|---|---|
| Trent | 17,135 | 133x | 30.1% | 16.5% |
| D-Mart | 47,131 | 105x | 18% | 8% |
| ABFRL | 7,355 | Loss | -11.8% | 9% |
| Vedant Fashions | 1,386 | 50x | 22.9% | 46% |
| Go Fashion | 848 | 52x | 14.3% | 31% |
🔍 Verdict?
Trent wins on size, scalability, ROE.
Only loses on valuation. PE is 💀.
12. 🧬 Miscellaneous – Shareholding, Promoters
| Category | Jun 2022 | Mar 2025 |
|---|---|---|
| Promoter (Tata Sons) | 37.01% | 37.01% |
| FII | 26.82% | 19.65% ↓ |
| DII | 14.58% | 17.20% ↑ |
| Public | 21.59% | 26.08% |
🚨 FII profit-booking visible
💪 DII love is growing
📈 Retailers flocking in — from 1.24L to 4.05L shareholders in 3 years
13. 🧑⚖️ EduInvesting Verdict™
- ✅ Growth? Incredible
- ✅ Margins? Expanding
- ✅ ROE/ROCE? Champagne-worthy
- ❌ Valuation? LOL. It’s trading at hype levels even Zomato would blush at.
Final Word:
Zudio is selling you ₹299 T-shirts. Trent is selling ₹5,300 stock dreams. If you buy this, you’re not investing — you’re cosplaying as Mukesh Ambani’s stylist.
But one thing’s for sure: Trent is India’s most stylish compounding machine.
✍️ Written by Prashant | 📅 July 12, 2025
Tags: Trent Ltd, Zudio, Westside, Tata Group, Retail Stocks, Fashion, D-Mart, PE Ratio, ROE, Indian Retail, EduInvesting
