How Trent is fashioning its success story

The Indian apparel industry has been on a roll, especially post-COVID. While various companies have benefited from the boom in this sector, one apparel maker that stands head and shoulders above its peers is Trent . This stock has given a monstrous 63 per cent return annually in the last three years. That means its market cap has more than quadrupled during the said period! It recently crossed Rs 1 lakh crore market cap and is poised to be a part of the Nifty 50. So, what is the secret behind Trent's success? Let's explore that. Riding the post-COVID wave Trent, like every other player in the industry, benefitted from the pent-up demand in this sector after COVID. Almost all players witnessed strong growth in topline and bottomline numbers. Take its direct competitor, Aditya Birla Fashion. Between FY20-23, its revenue grew 12 per cent annually. The same goes for many other players in the industry. But what makes Trent stand apart is that despite its rivals experiencing a slowdown once the post-COVID boom settled, its growth rate remained unscathed. While others reported lower growth in FY23, Trent's run continued in FY23. In fact, its margins expanded on the back of falling raw material prices. Trent's financials TTM Sept 2023 Mar 2023 Mar 2022 Mar 2021 Mar 2020 2Y growth (%) Revenue (Rs cr) 9959 8929 4892 2832