On this page ▾
The market expects Trent to carry on much as it has.
At today’s share price, buyers are assuming Trent grows about 35% a year, forever. Over the last ten years it actually grew about 35% a year. The two are close, so the share price does not need the business to improve or to stumble. It needs it to keep doing roughly what it already does.
- How it is valued: Discounted cash flow.
- What the price assumes: 35% growth, against 35% the model takes from its own record.
- Ten-year record: Between FY2018 and FY2026, Trent's revenue went from ₹2,157 crore to ₹20,074 crore — it compounded at about 32% a year over 8 years.
- Biggest swing factor: Zudio store growth. Main risk: Slowing growth.
01Zudio, Westside and the Tata name
Trent is the Tata group's retail company. Westside sells mid-priced fashion and home goods under its own brands, and Zudio sells value fashion at very low prices from a rapidly growing chain of stores across India.
Trent also runs Star grocery stores through a joint venture with Tesco, and Zara stores in India through a joint venture with Inditex. Almost everything it sells is its own brand, which keeps margins higher than most retailers'.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for Trent, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Trent's record, in plain numbers
Between FY2018 and FY2026, Trent's revenue went from ₹2,157 crore to ₹20,074 crore — it compounded at about 32% a year over 8 years. It reported a net loss in FY2021, and closed the period with net profit of ₹1,721 crore. In FY2026 it kept 8.6% of revenue as net profit — against a low of -7.0% in FY2021 and a high of 11.9% in FY2024. The latest year added 17.2% to revenue, well behind its own long-run pace. FY2022 is missing from the filed series used here, so that year is left out rather than estimated.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2018 | 2,157 | 87 | 4.0% |
| FY2019 | 2,630 | 95 | 3.6% |
| FY2020 | 3,486 | 106 | 3.0% |
| FY2021 | 2,593 | -181 | -7.0% |
| FY2022 | 45 | 0 | 0.8% |
| FY2023 | 8,242 | 394 | 4.8% |
| FY2024 | 12,375 | 1,477 | 11.9% |
| FY2025 | 17,135 | 1,534 | 9.0% |
| FY2026 | 20,074 | 1,721 | 8.6% |
04How Trent gets valued — and why
Discounted cash flowThis business is valued on the cash it is expected to generate, discounted back at its cost of capital — with growth taken from its own ten-year record rather than from guidance.
05What decides Trent's value
Zudio store growth
New Zudio stores are the main engine of growth.
Same-store sales
Whether older stores keep growing shows how durable demand is.
Own-brand margins
Selling its own brands lets Trent keep more of each sale.
Star groceries
The grocery business is smaller but could add growth.
06What could go wrong
- Slowing growth. Any slowdown matters a lot when the price assumes rapid growth.
- Competition in value fashion. Reliance and others are expanding their own low-price fashion chains.
- Store saturation. Opening stores this fast can lead to new stores taking sales from old ones.
07What the full Trent valuation shows
Sign in free to see the complete Trent valuation
- ✓Fair value per share — from a ten-year discounted cash flow, every step shown
- ✓The Workbench — change revenue growth, the discount rate or terminal growth and watch Trent's value move
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against DMart, Titan and Hindustan Unilever
- ✓Downloadable report — the full write-up, yours to keep
08Compare Trent with peers
The same valuation, run side by side.
Trent vs Avenue SupermartsFashion retail against everyday-value grocery, both store-network stories.→Trent vs Titan CompanyTwo Tata consumer businesses, jewellery against fashion.→Trent vs Hindustan UnileverOwning the store against owning the brands inside it.→09Questions people ask about Trent
What is Zudio?
Trent's value-fashion chain, selling clothing and footwear at low prices. It has driven most of Trent's recent growth.
Why is Trent's P/E so high?
The market is paying for years of fast store-led growth. The DCF tests how long that growth has to last to justify the price.
Trent or DMart — which is better value?
Two store-network retailers, compared side by side on their own page.
Is Trent overvalued?
At ₹3,165 the market is pricing in roughly 35% sustained growth, against the ~35% its own record supports. That is close to what it has delivered, so the price is broadly consistent with the company simply continuing as it has.
What is the intrinsic value of Trent?
It is computed from the filed financial statements using the method that fits this business (discounted cash flow), with every assumption shown alongside the result. The per-share figure and the full working are in the report.
How much debt does Trent carry?
Debt to equity stands at 0.09, down from 0.19 at the start of the period — the balance sheet is a core input to the cost of capital used here.