Tata Group stock: Shares of multibagger Trent Ltd have delivered 300% returns from their 52 week low in a nearly a year. The stock of Tata Group's subsidiary fell to a 52 week low of Rs 1946.35 on October 26, 2023. In the current session, the multibagger stock was in a correction mode, falling 3.47% to Rs 7842 on BSE.In comparsion, Sensex rose 23.21% in a year.
Trent shares are trading in the green, both in the short term and long term. The stock hits its record high of Rs 8345.85 in the last week. Since then, it has lost 6.23% from its peak. The multibagger stock climbed 468.46% in two years and rose 579.34% in three years. It has delivered stellar returns of 1,450% in the last five years.
However, today's stock action was in line with the broader market. Trent shares fell 4.01% to Rs 7792.60 against the previous close of Rs 8124.20 on BSE. It has seen low volatility in the last one year with its beta at 0.8. Total 8261 lakh shares of the firm changed hands amounting to a turnover of Rs 6.54 crore on BSE. Market cap of the firm stood at Rs 2.77 lakh crore on BSE.
The multibagger stock is neither overbought nor oversold on charts as the relative strength index (RSI) of the stock stands at 65.6.
International brokerage Morgan Stanley has an 'overweight' call on the Tata Group's subsidiary. It has given a price target of Rs 8,032 per share on Trent.
The BPC sales contribution was already quite material in Westside and Zudio stores. Zudio's BPC business had built scale over time, as customers have become more indulgent and impulsive, said the brokerage.
Trent is among the top picks of Axis Securities ahead of its Q2 earnings on November 7. The brokerage sees healthy revenue growth to continue on back of store expansion. EBITDA margins ar expected to increase on account of strong operating leverage. Key Monitorables in the Q2 earnings are demand outlook in Metros/Tier 2/3 towns ahead of festive season and store expansion guidance.
In September end, global brokerage Citi initiated coverage on the Tata Group stock with a 'buy' call. It assigned a price target of Rs 9,250 on the retail stock. Citi included the stock in its Pan-Asia high-conviction focus list.
Brokerage Citi said Trent was leveraging its supply chain and insights from Westside and Zudio, turning around its Star Bazaar business. Trent is well-positioned to scale up its other pilot projects, such as MISBU, Samoh, and its joint venture with MAS, said the brokerage.
The brokerage said the firm has transformed from a single-format to a multi-format player, which led to a 36 percent revenue CAGR from FY19 to FY24. As a multi-category player in fashion, lifestyle, grocery, and personal care, Trent reported industry-leading revenue, EBITDA, and PAT CAGRs of 41 percent, 44 percent, and 56 percent, respectively, for FY24–27.
Trent reported a 225% year-on-year rise in consolidated net profit for the June quarter. Net profit climbed to Rs 391 crore in Q1 against net profit of Rs 167 crore in the corresponding quarter of last fiscal. Revenues rose 56% to Rs 4104 crore compared to Rs 2628 crore in the corresponding quarter a year ago.
EBITDA or earnings before interest, taxes, depreciation and amortisation zoomed 199% on-year to Rs 400 crore against Rs 266 crore in the year-ago quarter.
Trent Limited is part of the Tata Group and operates a portfolio of retail concepts. The primary customer propositions of Trent include Westside, one of India's leading chains of fashion retail stores, Zudio, a one stop destination for great fashion at great value and Star, which operates in the competitive food, grocery and daily needs segment.