Multibagger Tata Group stock gets outperform call from Macquarie, shares gain

Shares of Tata Group's retail arm Trent Ltd have received an outperform call from global brokerage Macquarie. Initiating coverage on the stock, the brokerage expects it to hit a target of Rs 7,000, a 32% upside from the previous close. Referring to Trent as a 'Showstopper! - Leading fashion retailer', the brokerage said the leading fashion retailer in the value to mid-premium space leads its Asian peers on growth, return profile and inventory turns. 

The brokerage sees outperformance sustaining for the Tata Group firm and mentioned that Trent is Asia's best retailing metrics and a play on India's rising discretionary spend in fashion. 

Recently the company announced that its brand Westside has opened three more stores in multiple cities, taking its total store count to 244. On Wednesday, the firm said Westside has launched its new store in Lucknow, Uttar Pradesh taking its store count to 245.  

Trent shares have delivered multibagger returns of 309%, 324% and 988.85% in two years, three years and five years, respectively. Trent stock hit a record high of Rs 8,345.85 on October 14, 2024. It has lost 36% since then.

It has seen high volatility in the last one year with a beta of 1.1. The multibagger Tata Group stock is trading higher than the 5 day, 10 day, 20 day, 30 day but lower than the 50 day, 100 day, 150 day and 200 day moving averages. 

Trent shares are neither overbought nor oversold on charts with a RSI of 55.2. 

The stock opened higher in the current session. Trent stock gained 1.15% to Rs 5380 against the previous close of Rs 5318.85 on BSE. Market cap of the firm climbed to Rs 1.91 lakh crore. 

Earlier this month, Kotak Institutional Equities gave a ‘Reduce' rating on Trent. It assigned a price target of Rs 5,150. The brokerage continues to see pressure on Trent's revenue throughput on account of its own densely located newer stores of Westside and Zudio.

The brokerage assumes a flat revenue throughput for Zudio and has trimmed revenue throughput for Westside, resulting in a 1-5% earnings per share cut for FY26-27.