In a market where prices swing based on rumours and everyone chases quick profits, sticking to long-term investing stands out. No wonder one of India’s Warren Buffetts, a value investor, Radhakishan Damani, is so widely followed. Also known as the “Retail King”, he stays calm instead of trading in tense market situations.
Damani has made his mark not by following market trends or giving in to market chaos, but by sticking to investing in solid businesses for the long haul. And now, two of his long-held investments, which he’s kept through market ups and downs now sell for 45% less than their All-Time High prices.
This makes us wonder: are these companies underpriced and ready to grow, or has Damani spotted long-term value that others haven’t seen yet? Has Damani found undervalued assets that could pay off big in the future? Let us take a deep dive into these stocks to understand better.
Established as Lakme Ltd in 1952, Trent came to existence in 1998 when Lakme decided to divest its cosmetics business and venture into apparel retailing, recognizing the potential in that sector.
Trent Ltd is now engaged in retailing of apparels, footwear, accessories, toys, games, food, grocery & non-food products through various of its retail formats/ concepts
With a market cap of Rs 1,64,382 cr, Trent operates 850+ stores through different store concepts.
Retail King Radhakishan Damani has been holding a stake in Trent since December 2015 (as far as the data on Trendlyne.com shows), through his company Derive Trading and Resorts Private Limited. Currently he holds 1.27% stake in the company.
So, what is it that has kept Damani hooked on to Trent for almost a decade now. Let’s look at the financials for now, as soon the March 2025 financials will be out, and it would be good to have these numbers handy then.
The company’s sales were at Rs 2,630 cr for FY19 and it jumped to Rs 12,375 cr for FY24, which is a compounded growth of 36% in 5 years.
For 9MFY25, April to December 2024, the company has already recorded sales of almost Rs 13,000 cr.
The EBITDA (earnings before interest, taxes, depreciation, and amortization) for Trent was Rs 241 cr in FY19 which has grown to Rs 1,971 as of FY24, logging in a compound growth of about 52%.
The net profits for Trent saw a compound growth of 57% as it jumped form Rs 95 cr in FY19 to Rs 1,477 cr in FY24. And for 9MFY25, the profits are at Rs 1,223 cr, hinting at a good upcoming quarter.
The share price of Trent jumped from around Rs 464 in April 2020 to its price as on closing on 9th April 2025, which is Rs 4,620. That’s a jump of almost 900% in just 5 years.
If one had invested just 1 lac in the company 5 years back, it would today be close to Rs 10,00,000.
Now, even at the current price, the stock is trading at about a 45% discount from its all-time high of Rs 8,346.
The company’s share is trading at a current PE of 111x, while industry median is just around 40x. The 10-year median PE for Trent is 165x, while the industry median for the same period is a just 37x
Trent has a current ROCE (Return on Capital Employed) of 24% while the industry median is 15x. It means that for every Rs 100 Trent spends as Capital, it earns Rs 24 in profits.
No wonder the company maintains a healthy dividend payout of 27.4%.
Incorporated on November 10th, 1930, in Hyderabad, VST Industries Ltd (originally Vazir Sultan Tobacco Company) is an associate of British American Tobacco Plc., a global leader in the cigarette industry. VST operations include the manufacture and trading of cigarettes and tobacco products.
With a market cap of Rs 4,562 cr, VST is the 3rd largest player in the domestic cigarette market.
Damani has held a stake in VST since March 2016 as per data on Trendlyne.com, either in his own portfolio or through his companies, Bright Star Investments Pvt. Ltd or Derive Trading and Resorts Pvt. Ltd.
Currently he holds 1.3% stake as of the quarter ending December 2024.
As for the financials, the company’s sales jumped from Rs 1,099 cr in FY19 to Rs 1,420 cr in FY24 which is a compound jump of 5%. And between April and December 2024, the company logged in sales of Rs 1,048 cr.
EBITDA was Rs 353 cr in FY19 and in FY24, showing no or flat growth. For 9MFY24, VST has logged in 209 in EBITDA.
Looking at profits, VST’s profits went from Rs 227 cr in FY19 to Rs 302 cr in FY24, logging a compound growth of 6%. And between April and December 2024, the profits are at Rs 238 cr already.
VST’s share price was around Rs 246 in April 2020 which has grown to its current price of Rs 269 (As on closing of 9thApril 2025). This is a jump of almost 10%.
At the current price of Rs 269, the company’s share is trading at a discount of 45% from its all-time high of Rs 487.
The share is trading at a PE of 19x, while the industry median is 30x. The 10-year median PE of VST is also 19x while the industry median for the same period is 19x.
In November 2024, Mr. Aditya Deb Gooptu MD& CEO of the Company tendered his resignation. So, a major change in leadership is coming soon.
Is The Damani Playbook Worth Following?
Radhakishan Damani’s almost decade long hold in Trent Ltd. and VST Industries Ltd gives us a peek into the ‘Retail King’s’ thinking. These aren’t flashy investments—they’re well-thought-out pillars in his plan. The fact that they’re now 45% cheaper than their highest ever prices make them even more interesting. Given Damani’s success in the past, we should pay attention to these choices too.
The two companies tell different but interesting stories. Trent’s sales and profits are growing fast showing it could become a retail powerhouse. VST, on the other hand, is holding steady with small gains and keeps paying dividends even though its EBITDA hasn’t changed in a tough tobacco market. Both face their own challenges—Trent’s high stock price and VST’s change in leadership—but they both have a chance to do well as India’s economy keeps changing.
Damani’s steady faith in these stocks suggests he sees beyond short-term market swings. Does Trent’s growth potential or VST’s hidden value keep him invested? Time will tell. For now, these holdings stand out as ones to watch—sleeping giants that might catch the market off guard.
Disclaimer:
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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