Radhakishan Damani’s Shocking Exit from Trent Stock**
In a move that has sent shockwaves across Dalal Street, Radhakishan Damani, India’s billionaire investor and founder of DMart, has reportedly exited his decade-long investment in Trent Limited, the retail arm of Tata Group. The Radhakishan Damani Trent exit became evident when shareholding data for the September 2025 quarter revealed that his stake, held through Derive Trading and Resorts Private Limited, dropped below the 1% mark from 1.2% in the previous quarter.[1][2][3]
The Journey: From 2.74% to Below 1%
Damani first invested in Trent around 2010, acquiring a 2.74% stake in the company that operates popular retail brands like Westside, Zudio, Star, and Landmark. Over the past 15 years, the Radhakishan Damani Trent exit marks the end of a remarkable investment journey that witnessed extraordinary growth in both business fundamentals and stock performance.[2]
Stellar Performance Despite the Exit
Trent’s financial performance has been nothing short of spectacular. The company’s sales skyrocketed from Rs 3,486 crore in FY20 to Rs 17,135 crore in FY25, representing a compounded annual growth rate (CAGR) of 38%. Net profits surged from Rs 106 crore to Rs 1,534 crore during the same period, achieving a stunning 67% CAGR.[3][1][2]
The stock price mirrored this growth, surging over 650% from Rs 635 in October 2020 to Rs 4,788 as of October 24, 2025. An investment of just Rs 1 lakh five years ago would now be worth approximately Rs 7.5 lakh.[1][2][3]
Why Did Damani Exit Trent?
The Radhakishan Damani Trent exit raises critical questions about the timing and rationale behind this decision. Despite the impressive growth trajectory, Trent’s stock has corrected over 36% from its peak of nearly Rs 7,500 in October 2024.[2][1]
Several factors may have influenced Damani’s decision. First, valuation concerns are prominent—Trent currently trades at a price-to-earnings ratio of 108 times, significantly higher than the industry median of 42 times. Second, the company’s recent business updates showed slower growth, with Q1 FY26 revenue growth at 20% compared to the historical 5-year CAGR of 35%.[4][5][1][2]
Market Reaction and Analyst Views
Following weaker-than-expected quarterly updates, Trent shares have witnessed significant volatility. In July 2025, Damani himself suffered a paper loss of over Rs 310 crore when the stock plunged 11% in a single trading session.[5][6][4]
Brokerage firms have revised their outlook on Trent. Nuvama Institutional Equities downgraded the stock to ‘Hold’ with a revised target of Rs 5,884, citing growth concerns. However, other analysts remain optimistic, with some projecting upside potential of 15-47%.[7][4]
Trent’s Future Prospects
Despite the Radhakishan Damani Trent exit, Trent remains a formidable player in India’s retail sector with a market capitalization of Rs 1.70 lakh crore. The company continues its aggressive expansion, planning to open over 250 new stores in FY26. Newer verticals like Zudio Beauty and Star Bazaar are expected to drive future growth once they stabilize.[6][4][1][2]
The company maintains strong fundamentals with a Return on Capital Employed (ROCE) of 30% compared to the industry median of 17%, and a three-year Return on Equity (ROE) of 25.6%.[3][2]
Secondary Keywords: Trent stock performance, Damani investment strategy, Indian retail stocks, Trent valuation, Derive Trading and Resorts
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