This fashion retailer offered returns of over 500% in the past decade

Trent’s gross sales in the last decade to March 31, 2019 rose 237 percent. Net profit jumped to Rs 106 crore from Rs 22 lakh in the same period. Retail fashion brands with private labels have typically seen higher footfalls, helping them beat the long lull seen in the early 2000s.

The good show has reflected on the share price. The Trent stock has shot up 516 percent at Rs 545 in the past decade. Trent shares have rallied steadily this year despite the crushing slowdown and liquidity crisis as well as the cutthroat competition from ecommerce players. This year alone, it delivered 50 percent returns to its shareholders.

Westside, the retail subsidiary of Trent, recorded nearly 85 percent growth in revenue with a higher contribution from substantial sales growth from stores at existing locations. Private brands have contributed nearly 97 percent returns to the revenue, which has resulted in 180 percent growth in cash balance in the last 10 years.

Westside, in particular, recorded a nearly 85 percent growth in revenue. Much of that growth came from stores at existing locations. But the salient reason for the stellar growth has been the contribution of private labels.

Private brands contributed nearly 97 percent of revenue, triggering a 180 percent growth in cash balance in the past decade.

The downside for an investor is the expensive valuation of the stock at 194x price-to-earnings. The debt-to-equity ratio at 0.30x and return-on-equity (RoE) at 6.57 percent as on March 31, 2019 are also unfavourable to investors.