The analyst highlighted the mix of brand strength, sector growth, and market expectations, keeping valuations elevated.
Valuations in some of India’s most-watched stocks remain elevated, with price-to-earnings (P/E) multiples well above typical levels — DMart trades at 113x, Jio Financial at 127x, and Trent at 122x.
DMart (Avenue Supermarts)
SEBI-registered analyst Mayank Singh Chandel stated that investors continue to pay a premium for DMart, which trades at a P/E ratio of 113, due to its strong business model, steady revenue growth, and dominance in the grocery retail sector.
Even with thin margins, its scalability and brand trust keep valuations high. Since listing, the stock has climbed in a steady uptrend, characterized by higher highs and higher lows, although it has moved sideways since 2021.
Chandel suggested existing holders can stay invested, while fresh entries should wait for a breakout above its all-time high of ₹5,900.
On Stocktwits, retail sentiment for DMart was ‘neutral’ amid ‘normal’ message volume.
DMart’s stock has risen 32.6% so far in 2025.
Jio Financial Services
On Jio Financial, which trades at a P/E ratio of around 127, Chandel said the market is pricing in future growth potential rather than current earnings.
He highlighted Jio’s brand strength, customer base, and cross-selling ability as drivers of investor optimism, even as profits remain in the early stage. Since listing, the stock has been volatile without a clear direction.
Chandel advised avoiding fresh positions until a proper trend emerges.
On Stocktwits, retail sentiment for Jio Financial was ‘bearish’ amid ‘low’ message volume.
Jio Financial’s stock has risen 4.8% so far in 2025.
Trent
Trent, part of the Tata Group, trades at a P/E of 122. Chandel attributed the high valuation to the growth outlook for India’s fashion retail sector and the strength of its brands, Westside and Zudio.
The stock has been in a long-term uptrend but recently corrected from ₹8,345 to ₹4,488, which he described as a healthy pullback.
Currently, it is making lower highs and lower lows. Chandel said a safer entry point would be once the stock closes above the recent swing high of ₹6,261.
On Stocktwits, retail sentiment for Trent was ‘neutral’ amid ‘low’ message volume.
Trent’s stock has declined 23.3% so far in 2025.
Takeaway
Chandel noted that fundamentals explain why valuations are elevated, while technicals help identify the right entry and exit points.
In his view, fundamentals drive the story, but technicals decide the timing.
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