This Midcap Tata Stock Rallies 7.67%, Motilal Oswal Suggests "Buy" For 13% Upside

Tata Group's Midcap stock Trent Ltd gets a "Buy' call from Motilal Oswal. The brokerage has assigned an estimated target price of Rs 1,500 apiece for the stock. The stock today rallied post the announcement of Q3FY23 results. It reported robust 61% revenue growth. The brokerage sees a potential upside of 13% from its current level considering the given target price. Below are the key takeaways about the stock:

Trent Ltd Stock Outlook & Performance

On NSE, the stock of Trent is trading at Rs 1,330.85 apiece. Stock rallies 7.67% as compared to its previous close of Rs 1,236.05 apiece. The stock has given 9.88% positive return in 1 week, and in 1 month it gave 9.06% positive return, respectively. In 1 year it gave 24.25% positive return. In the past 3 years, it gave 100.78% positive return. In 5 years it gave robust return of 320.9%.

The stock recorded its 52 week low on 24 February 2022 at Rs 980 apiece and 52 week high on 1 November 2022 at Rs 1.566 apiece. It has a market capitalisation of Rs 47,102.09 crore. The stock operates in the Retail sector.

Motilal Oswal Recommends "Buy" on the stock with a Target Price of Rs 1,500/share

According to the brokerage, Trent's revenue growth remained robust at 61% YoY in 3QFY23, backed by a strong footprint addition and healthy LFL growth of 17% in Westside. But standalone EBITDA grew only 15% (19% miss), dragged down by lower gross margins due to a higher share of low-margin Zudio, the inventory provision reversal in the corresponding quarter and discounting. "We expect a standalone revenue/EBITDA CAGR of 28%/30% over FY23-25, backed by a strong footprint addition and robust LFL growth across segments. We retain our Buy rating with a TP of INR1,500, given the strong growth opportunity," the brokerage has said.

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 consult with certified experts before making any investment decision.