Tata Group Stock To Buy After Q3 Earnings, TP Rs 4200: Motilal Oswal

Motilal Oswal has recommended investors to buy large cap Tata Group stock Trent Ltd with target price of Rs 4200 after the company announced healthy Q3 results. Trent shares hit 20% upper circuit on February 7 after the company declared a jump of 124% year-on-year (YoY) in its consolidated net profit to Rs 374.36 crore as against Rs 167 crore in the corresponding quarter of last year. Today Trent shares have already rallied 7.97% on BSE with current market price quoted at Rs 3897.00 apiece. Trent operates in specialty retail sector and offered shareholders return of 26% in last 1-week only and soared 128% in last 6-months.

If you buy Trent shares at the current market price of Rs 3897 apiece, you can fetch potential return of 7.78%. Check details below:

Trent Shares Rally On Healthy Q3 Earnings: As per the BSE filing of the company issued yesterday, revenue of Trent for December 2023 quarter jumped to Rs 3466 crore, up 50.5% from Rs 2303.4 crore in the same quarter of last year. Trent announced its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) soared 95% to Rs 629 crore. Margin declared at 18% as against 14% in the year ago period.

"Across formats, we continued to register consistent growth, serving as a reaffirmation of our strategic choices. Our operating discipline coupled with focus on the speed of execution supported our expansion agenda. Change in the revenue profile across formats remains aligned with our strategic objectives and plans. The gross margin profile of Westside and Zudio continue to remain consistent with earlier trends. Overall, Operating EBIT* margin for Q3FY24 is 13.0% (8.5% for Q3FY23). Performance of the business and the growth momentum encourages us to continue with our expansion plans," said Trent.

As of 31 st December 2023, our portfolio included 227 Westside, 460 Zudio and 28 stores across other lifestyle concepts. During the quarter, we added 5 Westside and 50 Zudio stores across 36 cities including 13 new cities, added the BSE filing.

Trent Shares Performance & Return Over Years: The 52-week high price of Trent shares on BSE is Rs 3935.85 apiece and 52-week low price is Rs 1,211.00 apiece, respectively. Trent Ltd shares offered shareholders attractive returns over the years. Trent shares witnessed surge of 215% in last 1-year, gained 269% in last 2-years, rose 462% in last 3-years, and offered shareholders return of 1018% in last 5-years. In last 10-years. the scrip soared 3646%.

It is worth noting that promoters held 37.01% stake in Trent as of Dec 31, 2023 and FIIs owned 25.91% while DIIs stake is 14.82%.

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.