Discretionary: Zudio in tier-2/3
| Peer | Status | P/E | ROE | Mkt cap | Why we do not hold it (approved text) | Links |
|---|---|---|---|---|---|---|
| Trent | Held | 81.76 | 24.62% | 1.48 L Cr | Discretionary: Zudio in tier-2/3 | |
| V-Mart Retail | Not held | n/a | n/a | n/a | V-Mart (mcap Rs 6,518 cr, 47x PE, ROE 14%, 600 stores) grew Q1FY27 sales 23% but carries Rs 958 cr borrowings on a Rs ~1,200 cr net worth and has a history of loss-making years (LimeRoad); Trent's ROE is double and its scale (Rs 20,000 cr revenue vs Rs 3,789 cr) gives sourcing advantages. | Screener · Tijori |
| Shoppers Stop | Not held | n/a | n/a | n/a | Shoppers Stop is loss-making (FY26 PAT -Rs 36 cr, Q1FY27 - Rs 14 cr), ROE -6%, borrowings Rs 3,317 cr on mcap of Rs 4,272 cr; department-store model is being disrupted by exactly the own-brand value formats Trent runs. | Screener · Tijori |
| ABFRL | Not held | n/a | n/a | n/a | ABFRL lost Rs 830 cr in FY26 and Rs 249 cr in Q1FY27 with Rs 6,189 cr borrowings and promoter holding down to 46.6% from 55.5% (repeated equity raises); Trent is self-funding growth at 28% ROE. | Screener · Tijori |
Peer numbers are shown only where the peer is in the security master (fundamentals pulled); "n/a" otherwise — a peer is not added to the data pull without a research request. Reasons are quoted from the one-pager (8 Sep 2026).
Nestlé India is a superb business at 60x+ with the least GST benefit and the slowest volume growth of the group; ITC is cigarettes-led (we specifically exclude cigarettes from the volume thesis) and now a hotels demerger story; Dabur and Godrej Consumer have weaker execution and portfolio issues (honey/chyawanprash seasonality; GCPL's African drag). Marico is a copra-cost story, not a volume story. Tata Consumer pays 60x for tea. In discretionary, V-Mart and ABFRL lack Trent's unit economics and balance sheet, and Shoppers Stop is the wrong price point for a transfer-led recovery.
All sectors we avoid or underweight →HUL (3.3%, Core) is the broadest single lever on the volume recovery — 60% of its portfolio saw GST cuts, a new CEO is resetting the portfolio and the stock has de-rated to ~42x FY27E. Trent (3.1%, Core) is our discretionary expression: Zudio's 982 stores (from ~240 four years ago) are 80%+ in tier-2/3 towns where the transfers land, and the whole assortment sits under the ₹2,500 GST threshold. Britannia (2.0%, Core) is the cleanest GST beneficiary (biscuits 18% → 5%) with a 50%+ ROE and a multiple at the low end of its own decade. Varun Beverages (1.0%, Core) is the rural-distribution and Africa-growth story at 40x versus 55–70x in 2023–24.