Tata’s Trent Overtakes Radhakishan Damani DMart in Market Value as Shares Soar and Earnings Disappoint

Trent, a Tata Group company, has surpassed Avenue Supermarts, the operator of DMart, in market capitalization on Monday. This shift comes as Trent’s stock continues to rise, while Radhakishan Damani’s DMart shares fell sharply after disappointing Q2 results.

On October 14, Trent’s market cap reached over ₹2.92 lakh crore, while Avenue Supermarts’ market cap dropped to ₹2.72 lakh crore. DMart shares plummeted more than 9%, marking their biggest single-day decline since January 2019, as they fell to ₹4,143.60 on the BSE.

Trent operates several retail brands, including fashion chains Westside and Zudio, as well as Star, which focuses on food and grocery. As of June 30, 2024, Trent had 228 Westside stores, 559 Zudio stores, and 36 other lifestyle outlets. Recently, the company launched a new lab-grown diamond brand, ‘Pome,’ in its Westside stores.

According to Kotak Equities, Pome is positioned like Zudio in the jewelry sector, promoting the idea of “diamonds for all.”

In contrast, DMart shares fell sharply after the company reported lower-than-expected earnings for the September quarter. Avenue Supermarts’ revenue grew 14.4% year-on-year, and net profit rose only 5.77%, leading to a slight decrease in EBITDA margin.

Trent Stock Performance

Trent’s stock has experienced impressive growth, rising over 14% in the past month and 46% in the last three months. Year-to-date, the stock has surged 170% and is up 296% over the past year. In the last three years, Trent’s stock has skyrocketed by 611%.

Ganesh Dongre, a Senior Manager at Anand Rathi, noted that Trent’s stock broke out at the ₹7,900 level, suggesting that any dips would be good buying opportunities, with a stop loss set at ₹7,600 – ₹7,800 and a target of ₹8,800.

DMart Stock Performance

Conversely, DMart has struggled, with its stock falling over 19% in the past month and more than 15% in three months. Year-to-date, Avenue Supermarts shares are up just over 2% and have gained more than 6% in the past year.