Tata Stock Gained 123% In 2023, Gets Buy Call For More Return: Motilal Oswal

Large cap Tata Group Stock Trent Ltd witnessed a sharp rally of 123% in 2023 and soared 743% in last 5-years. Motilal Oswal appears bullish on Trent shares and recommended buy call with target price of Rs 3140 apiece.

Current market price of Trent Ltd stock on BSE is Rs 2964.20 per share with intraday gain of 0.28%. Trent shares also saw spurt in volume by more than 6.41 times. Trent stock also hit its fresh 52-week high on December 20, 2023. Check more details below:

Trent Stock Performance & Return Over Years: The stock's 52-week high price is Rs 3045.35 per share and 52-week low price is Rs 1,155.10 per share, respectively. The large cap company has a market capitalisation of Rs 1,05,373.59 crore. Trent Ltd shares declined 0.79% in last 1-week, soared 44% in last 3-months only, gained 121% year-to-date, and jumped 184% in last 2-years. Trent shares surged 328% in last 3-years and rallied 2353% in last 10-years span.

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 INR3,140. 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: The Tata Group's stock on November 7, 2023 declared a surge of 189% in its consolidated net profit to Rs 228 crore for the July to September quarter on the back of strong revenue as against Rs 78.94 crore in the corresponding quarter of last fiscal. The company on a consolidated basis declared a surge 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. It announced its net income at Rs 3,062 crore for Q2 of current fiscal. Trent declared its EBITDA 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.