Tata group stocks such as Trent Ltd, Tata Investment Corporation Ltd, TRF Ltd, Voltas Ltd, Automotive Stampings and Assemblies Ltd, Automobile Corporation of Goa Ltd and Tejas Networks Ltd are seven Tata group stocks that have more than doubled from their 52-week low levels. Tata Power Company Ltd, Nelco Ltd, Tata Motors Ltd, The Indian Hotels Company Ltd and Rallis India Ltd are a few other group stocks delivering 50-100 per cent returns from the one-year low levels, data compiled from corporate database AceEquity suggested. At last count, a total of 26 listed Tata stocks commanded a market capitalisation of Rs 34,80,975 crore.
Data showed Trent has zoomed 267.23 per cent to Rs 7,147.75 level from a low of Rs 1,946.35 hit on October 26, 2023. Trent will be joining the Nifty pack soon. Foreign brokearge Bernstein last week initiated coverage the stock 'Outperform' rating with a target of Rs 8,100, saying Trent has established itself as the fastest growing and most profitable apparel retailer in India.
"We debated internally the sustainability of its high Zudio store growth, only recently improved margin performance and high valuations (143 times P/E). However, we are convinced that Zudio still has a runway of 5+ years for store addition at current pace before it needs to slow down materially and the operational excellence is not a flash in the pan (5-year average cash-conversion cycle of 25 days)," Bernstein added.
Tata Investment Corporation Ltd has seen its shares rallying 196 per cent to Rs 7,213.20 from September 2023 low of Rs 2,438.05. Tata Investment is a subsidiary of Tata Sons, a holding company of the Tata Group. It invests in a portfolio of quoted and unquoted securities of companies, including Tata companies, which are engaged in various businesses.
TRF, which is promoted by Tata Steel Ltd, soared 150 per cent in the past one year while Voltas Ltd advanced 109 per cent during the same period. BNP Paribas has Voltas as its best play in the under-penetrated RAC industry. The brokerage believes the Tata group firm is on track to be a pure-play white goods company. "Factoring in the 1Q beat, we raise our FY25-27E EPS by 8-9 per cent. Our SoTP-based target price rises by 6 per cent to Rs 1,660," it said on August 16.
Automotive Stampings and Assemblies Ltd, Automobile Corporation of Goa Ltd and Tejas Networks Ltd climbed between 105 per cent and 118 per cent. Tata Power Company Ltd rose 87 per cent, Nelco 85 per cent and Tata Motors 80 per cent. On Tata Power, ICICI Securities said the near-term earnings will be driven by earnings from solar manufacturing and solar rooftop. It maintained 'Buy' on the stock with a target of Rs 500 per share. In the case of Tata Motors, Tata Motors, the Tata group firm reported domestic PV sales of 44,100 units in August, down 3 per cent YoY. EV sales fell 5 per cent YoY to 5,900 units. With the Curvv launch, the foreign broking firm expects volumes to scale up going ahead. The brokerage has a 'Buy' rating on the stock with a target of Rs 1,303.
The Indian Hotels Company (76 per cent) and Rallis India Ltd (69 per cent) also recovered smartly over their respective 52-week lows.