Tata Group Stock Hits 52-Week High, Rallies 123% In 2023; Buy?

Large cap Tata Group stock Trent Ltd shares gained nearly 122.68% in last 1-year (2023) and soared 44.71% in last 3-months. Today Trent shares hit fresh 52-week high but despite that declined 1.76% till 3:22 pm. The company operating in specialty retail industry has a market capitalisation of Rs 1,06,896.86 crore. Earlier this year, Trent declared dividend of Rs 2.20 and the ex-dividend date was 25 May 2023. Check details below:

Trent Stock Performance & Return Over Years: Current market price of Trent Ltd on BSE is Rs 3000.05 apiece. 52-week high price is Rs 3089.60 per share and 52-week low price is Rs 1,155.10 per share, respectively. Trent Ltd shares soared 71% in last 6-months, gained 123% in last 1-year, soared 182% in last 2-years, and jumped 345% in last 3-years. In last 5-years, Trent stock surged 733%. In last 10-years, Trent shares offered return of 2344%.

Trent Valuation: According to Motilal Oswal report dated December 11, 2023, "We assign 37x EV/EBITDA to the standalone business (Westside and Zudio; premium over our Retail Universe, given its superlative growth), 2x EV/sales to Star Bazaar, and 15x EV/EBITDA to Zara on Sep'25E, and arrive at a TP of INR 3,140. We reiterate our BUY rating on the stock."

Trent's industry-leading revenue growth was driven by: a) healthy SSSG and productivity, b) robust footprint additions, and c) a healthy scale-up opportunity in Zudio offers a huge runway for growth over the next three to five years. The company's grocery segment, Star, with a presence of merely 65 stores and annualized revenue of INR18.1b (FY23) presents a huge opportunity to support growth. Its own brand strategy and curated range are seeing strong customer reception, added the analyst.

Trent Financials: Trent on November 7, 2023 announced the growth of 189% in its consolidated net profit to Rs 228 crore for the July to September quarter amid strong revenue as against Rs 78.94 crore in the corresponding quarter of last fiscal. The company on a consolidated basis announced rise of 52.7% on-year in its revenue to Rs 2,982 crore from Rs 1,953 crore in the similar quarter an year ago. Trent declared net income at Rs 3,062 crore for Q2 of current fiscal. The company's EBITDA was declared at Rs 456.57 crore, up 78.5% on-year as against Rs 255.81 crore in the year-ago quarter. EBITDA margin expanded to 15.3% as compared to 13.1% YoY.

Trent About: As part of the Tata group, Trent's flagship concept, Westside offers branded fashion apparel, footwear and accessories for women, men and children, along with a range of home furnishings & decor. This offer is presented through a differentiated portfolio of exclusive brands that are in tune with latest fashion trends appealing to a wide spectrum of style conscious consumers across defined customer segments, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.