🔍 2 High Growth Indian Companies Whose Stock Prices Are Down 25% In July 2025 – Opportunity or Red Flag?
When we think about investing in the stock market, one thing becomes clear — it’s not just about numbers; it’s about understanding the story behind those numbers. Many businesses in India are thriving, expanding store footprints, launching new products, and showing stellar financials — and yet, their stock prices remain depressed. Why?
Investing in high growth Indian companies requires understanding market dynamics and recognising potential opportunities.
Today, we’ll explore two such fundamentally strong high growth Indian companies:
✅ Trent Ltd. (Tata Group’s retail gem)
✅ Varun Beverages Ltd. (PepsiCo’s powerhouse bottler in India)
As we look into the profiles of these high growth Indian companies, it becomes evident that market perceptions can differ greatly from their actual performance.
Both companies have seen over 25–30% price correction from their peaks, despite healthy business growth. Is this a market overreaction, or an investor’s golden window? Let’s dive in.
This analysis will focus on high growth Indian companies that have shown resilience despite market fluctuations.
👗 Trent Ltd: The Tata-Backed Retail Powerhouse
Understanding the success of high growth Indian companies like Trent Ltd is crucial for informed investment decisions.
🚀 Business Overview
Trent Ltd is Tata Group’s retail arm with a strong presence in fashion and grocery segments. Its flagship brands, Westside and Zudio, are quickly becoming household names.
- Zudio: 765 stores across 235 cities
- Westside: 248 stores in 86 cities
- Star Bazaar (Grocery): 78 stores in 10 cities
- Total outlets (FY25): 1,443 and expanding fast
📈 Financial Snapshot (FY25)
- Revenue: ₹17,135 crore (+38% YoY)
- 5-Year CAGR:
- Revenue: 38%
- Profit: 70%
- EBITDA: ₹3,000 crore (+59%)
- Inventory Turnover: 5.3x (Up from 4.7x)
- Net Profit growth muted (3.86%) due to absence of ₹576 Cr exceptional income
🌍 Growth Strategy
- Expansion into beauty products
- International foray: Zudio’s first store in Dubai
- Bullish on Star Bazaar (Food retail)
- Target: Creating a lifestyle ecosystem to increase average footfall and wallet share
⚠️ Risks to Watch
- SHEIN x Reliance entry into India – low-cost fast fashion competitor
- Slowing growth from 50%+ to ~35% in recent quarters
🥤 Varun Beverages Ltd: Quenching Thirst with Consistency
Varun Beverages stands out among high growth Indian companies with its strategic distribution and market penetration.
🚀 Business Overview
Varun Beverages is PepsiCo’s largest bottling partner in India and one of the largest globally. They manage end-to-end production and distribution of Pepsi, 7Up, Mirinda, Tropicana, Slice, and Sting.
- Distribution: 130+ depots, 11 lakh+ coolers
- Reach: Every 5th Indian is a consumer
- Revenue Mix:
- 75% from carbonated drinks
- 18% from water
- 7% from juices
📈 Financial Snapshot (FY24)
- Revenue Growth: 20% YoY
- Volume Growth: 23%
- EBITDA: ₹471 crore (+35%)
- Net Profit: ₹2,600+ crore (+25%)
- 5-Year CAGR:
- Sales: 23%
- Profit: 41%
🌍 Growth Strategy
- New launches: Sting Gold, cumin-based beverages
- Expanding into value-added dairy products
- Capex of ₹3,100 crore (₹900 Cr pending)
- Expansion in South Africa and Zimbabwe
⚠️ Risks to Monitor
- Sugar inflation – affects margins
- Regulatory risk in international markets
- Weather dependency – cool summers = slower sales
📉 Why Are Their Stock Prices Falling?
Despite strong growth, both Trent and Varun Beverages have corrected 25–30% from recent peaks.
Trent:
- From ₹8,300 to ₹5,400
- Price drop largely due to deceleration in YoY growth (from 50%+ to ~35%)
Varun Beverages:
- From ₹680 to ₹420
- Investor reaction to short-term profit margin pressure due to higher input costs (mainly sugar)
But here’s the catch — these are temporary headwinds, not structural issues.
Investors should keep an eye on high growth Indian companies as they navigate through temporary challenges.
📊 Comparative Valuation: Trent vs Peers
| Company | P/E Ratio | EV/EBITDA | Revenue Growth (5Y) | Profit Growth (5Y) |
|---|---|---|---|---|
| Trent Ltd | 83x | 45x | 38% | 70% |
| Aditya Birla Fashion (ABFRL) | 92x | 38x | 21% | 35% |
| Shoppers Stop | 74x | 34x | 18% | 30% |
🧠 Conclusion: Trent is expensive, but its growth is structurally stronger than peers.
The potential of high growth Indian companies in the retail and beverage sectors remains significant.
📉 Historical Technical Levels
🔹 Trent Ltd (NSE: TRENT)
- 52-Week High: ₹8,345
- Current Price: ₹5,487
🔹 Varun Beverages (NSE: VBL)
- 52-Week High: ₹1,520
- Current Price: ₹1,120
📈 Both are near strong accumulation zones, ideal for long-term entries.
📈 DCF Snapshot & Long-Term Valuation Sheet
🧮 DCF Assumptions (Trent)
| Metric | Value |
|---|---|
| Revenue CAGR (10Y) | 22% |
| Terminal Growth | 5% |
| WACC | 10.5% |
| Intrinsic Value Range | ₹3,500–₹3,900 |
🧮 DCF Assumptions (Varun Beverages)
| Metric | Value |
|---|---|
| Revenue CAGR (10Y) | 17% |
| Terminal Growth | 4.5% |
| WACC | 9.8% |
| Intrinsic Value Range | ₹1,250–₹1,400 |
🎯 Current market prices are offering a 10–15% discount to DCF valuations for both.
Both Trent Ltd and Varun Beverages are examples of high growth Indian companies with promising futures.
🧠 Final Thoughts: Temporary Dips, Long-Term Opportunities?
If you’re a long-term investor, these temporary price corrections offer a strategic entry point.
For investors, focusing on high growth Indian companies offers a pathway to potential long-term gains.
- Trent offers retail scale + brand power + global expansion
- Varun Beverages offers stability + new product growth + capex-driven volume surge
Both companies are fundamentally sound, with solid leadership and a runway for long-term growth.
📌 Investor Checklist
✅ Strong fundamentals
✅ Temporary headwinds
✅ Near support levels
✅ Discounted to intrinsic value
✍️ Let’s Hear From You
Have you invested in Trent or Varun Beverages? What are your thoughts on their long-term potential?
Comment below, and don’t forget to share this blog with a fellow investor who needs clarity during red market days.
ALSO READ
Follow me on Twitter (X) or Facebook. Join WhatsApp Channel or Facebook Group for Updates.
Liked our article ? Subscribe to get weekly updates