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Retail Giants Trent & Dmart Hit by Market Sell-Off
17 Mar
Summary
- Trent and Dmart stocks trade near 52-week lows.
- Investor concerns rise over Middle East war impact.
- Quick commerce growth poses a threat to sales.
Trent (Westside) and Avenue Supermarket (Dmart), long considered stalwarts of organized retail, are experiencing significant selling pressure on the stock market. Both companies' stocks are trading close to their 52-week lows as of March 17, 2026. Investors express apprehension about the Middle East conflict's potential economic repercussions and the increasing competition from online quick commerce.
Trent's revenue from operations grew 14.8% year-on-year to Rs 5,345 crore in the December 2025 quarter, with net profit rising only 2.8%. Avenue Supermarket reported a 13.3% year-on-year revenue growth to Rs 18,101 crore in the same quarter, with net profit up 18.3%. Despite these figures, like-for-like growth for Avenue Supermarket slowed.
Both retailers face scrutiny over their high Price-to-Earnings valuations, which are approximately 77.1x for Trent and 86.8x for Avenue Supermarket. The rapid expansion of online platforms like Meesho, which saw a 36% increase in placed orders in Q3 FY26, challenges the historical growth assumptions for these established players.
Investors are advised to monitor the expansion of online retail and its impact on Trent and Dmart's future growth prospects. The stocks warrant a place on watchlists for 2026, pending assessment against evolving market expectations.
