Zudio-parent Trent and DMart-parent Avenue Supermarts have stayed resilient amid the recent market weakness, gaining nearly 6% and over 11% respectively in the past month. Their steady outperformance has investors weighing which retail stock may deliver stronger returns going forward.
Shares of Trent have surged around 11% in the past week, but remain down nearly 9% in 2026 so far and about 15% over the past year. Over the longer term, however, the stock has rallied more than 189% in three years and around 439% in five years.
Meanwhile, Avenue Supermarts has seen only marginal gains over the past week, but climbed 11% in one month and 18% in 2026 so far. Over a longer horizon, the stock has risen over 27% in three years and 49% in five years.
Valuation check
Trent shares have a P/E ratio of 85.50, according to data on NSE. The Tata Group company’s market capitalisation stands at nearly Rs 1.4 lakh crore. DMart shares, meanwhile, have a P/E ratio of more than 100. The company’s market capitalisation stands at around Rs 2.87 lakh crore.
Notably, both stocks have P/E levels that would typically be considered very high, although the story of measuring valuations is more nuanced than that.
Earnings comparison
Trent reported a 3% rise in its December quarter consolidated net profit at Rs 513 crore compared to Rs 497 crore reported in the year-ago period. The company's revenue from operations stood at Rs 5,345 crore in Q3 FY26, up 15% over Rs 4,657 crore posted in the corresponding period of the last financial year.
Which stock should you buy?
The Trent versus DMart debate today is essentially a choice between growth optionality and earnings stability, said Harshal Dasani, Business Head at INVasset PMS. Trent has delivered strong momentum, with sharp expansion in its Zudio format and continued traction in fashion retail. Its growth profile remains superior, driven by store additions, premiumisation and category expansion, the analyst said.
“However, that growth comes with higher volatility—fashion retail is inherently more sensitive to demand cycles, inventory risks and changing consumer preferences. The stock also trades at elevated valuations, which leaves limited room for disappointment in the near term,” he said.
According to Dasani, DMart offers a far more predictable earnings trajectory. Its core value proposition—everyday low pricing and high inventory turns—continues to drive steady footfalls and resilient same-store growth, even in a mixed consumption environment. “While its growth may appear slower compared to Trent, the quality of earnings, strong cash flows and disciplined expansion model make it a more consistent compounder,” he added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
