Trent was and is definitely over valued if you look with a lens of Q2 earnings. I did cut some and added those stocks where growth is more than Trent, but those are a short term play and done to reduce my portfolio allocation in Trent which crossed 75%. Trent is now a clearcut market leader and is a long term story. Yes valuations are high and has even crossed market cap of H&M which is less than 2 lakh crores. The Global store count of H&M is 4369 and P/B is 5.99 in contrast Trent has less than 1000 stores and P/B is now reduced to below 50 levels. Even smaller Indian retailers are available at premium for example V2 retails is at 100 PE and 15-16 time P/B. Shopper stop is at P/B of approx. 27 Red tape P/B is near 20. Overall fashion retail space is overvalued, so is Trent. My plan is to add more if price goes down to 4000-5000 range even if my allocation goes up.
Disc: Still my largest holding so very biased, bought at very low price. Not a buy/sell recommendation. I am not capable of giving any advice. Views are based on my very limited knowledge. Many a times I was & I can be wrong in all my assessments.
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