Damani Exits trent After Decade-Long Bull Run,Raising Questions About retail Stock’s Future
Mumbai: Radhakishan Damani,the retail magnate and one of India’s most successful investors,has significantly reduced his stake in Trent ltd,the Tata Group’s retail arm,sparking debate over the future trajectory of the stock after a period of explosive growth. The move comes as Trent, currently valued at Rs 1.70 lakh crore, shows signs of fatigue in its recent rally.
Trent operates a diverse retail portfolio encompassing apparel, footwear, accessories, groceries, toys, and home products through brands like Westside, Zudio, Star, and Landmark. The company has experienced remarkable expansion over the past five years,with sales increasing from Rs 3,486 crore in FY20 to Rs 17,135 crore in FY25 - a compounded annual growth rate (CAGR) of 38%. EBITDA surged from Rs 529 crore to Rs 2,820 crore (40% CAGR), and net profit jumped from Rs 106 crore to Rs 1,534 crore (67% CAGR) during the same period.
The stock’s performance mirrored this growth,soaring from Rs 635 in October 2020 to a peak of Rs 4,788.55 as of October 24, 2025, representing a gain of over 650%. However, after reaching nearly Rs 7,500 in October 2024, the share price has declined by over 36%, indicating increasing investor apprehension about sustaining its rapid expansion.
Despite this correction, Trent remains highly valued within the Indian retail sector, trading at 108 times earnings compared to an industry median of around 42 times. Its price-to-book ratio stands at 31.2 times. The company maintains strong profitability, with a three-year Return on Equity (ROE) of 25.6%, Return on Capital Employed (ROCE) of 31% (versus the industry’s 17%), and a dividend yield of 0.10%.
Technical analysis suggests a period of consolidation for Trent’s stock. It currently trades below six of its eight key Simple Moving Averages (SMAs) – the 5-day, 30-day, 50-day, 100-day, 150-day, and 200-day SMAs – while remaining above its 10-day and 20-day averages. The Relative Strength Index (RSI) is at 45, indicating a neutral position, and the MACD is at -72.6, below the centerline, signaling a bearish trend.
Damani’s exit could be a strategic profit-taking maneuver following a decade of ample gains,or it may reflect a belief that the stock’s upside potential is now limited.
