Radhakishan Damani's Exit from Trent
India’s retail king, Radhakishan Damani, has reportedly reduced his stake in Tata Group's Trent, sparking significant interest on Dalal Street. This change comes as a surprise after years of notable gains in his investments.
Investment Journey and Recent Changes
Filings for the September 2025 quarter indicate that Damani's stake has fallen below 1%, down from 1.2% in the previous quarter. He initially acquired a considerable share of 2.74% around 2010 but has now seemingly exited the position after almost a decade.
The company has seen impressive growth, with sales climbing from ?3,486 crore in FY20 to ?17,135 crore in FY25—translating into a 38% annual growth rate. Such achievements prompt questions about the motivations behind Damani's decision.
| Metric | FY20 | FY25 | CAGR |
|---|
| Sales (? crore) | 3,486 | 17,135 | 38% |
| EBITDA (? crore) | 529 | 2,820 | 40% |
| Net Profit (? crore) | 106 | 1,534 | 67% |
Valuation and Market Sentiment
Despite recent corrections, Trent remains a top player in India's retail stock arena, trading at 108 times earnings compared to an industry median of around 42 times. Analysts are divided on the future; the stock shows promising profitability metrics with a three-year ROE of 25.6%.
Market Outlook
Market analysts speculate that Damani's exit could signify either profit-taking or a warning sign of potential limits on future growth. His strategic decisions, often perceived through a long-term lens, raise questions about the sustainability of Trent's exceptional stock performance.
As the retail landscape evolves in India, many investors will be watching closely to see if Damani's departure reflects broader trends or specific concerns regarding Trent's business. Will fellow investors follow suit, or is this a strategic exit pointing to new opportunities?