Trent shares rally to hit new high; becomes fifth Tata Group firm to top Rs 1 lakh crore mcap
Shares of Trent surged about 150 per cent from its 52-week low at Rs 1155.10 hit on January 27, 2023. The stock has rallied 110 per cent in the year 2023 so far.
SUMMARY
- Trent shares rise 2% to hit new 52-week highs
- Total Mcap of the company topped Rs 1 lakh cr.
- Became fifth Tata Group firm to reach this feat.
Shares of Trent Ltd continued to move higher on Friday, rising another 2 per cent, hitting its new record highs during the session. The multibagger from the Tata Group became the fifth listed from the renowned Indian conglomerate to claim Rs 1 lakh crore market capitalization.
Before giving up its gains partially, shares of Trent surged about 2 per cent to Rs 2,840 during the session, commanding a total market capitalization of Rs 1,00,958 crore for the day. The scrip had settled at Rs 2784.80 in the previous trading session on Thursday.
Shares of Trent surged about 150 per cent from its 52-week low at Rs 1155.10 hit on January 27, 2023. The stock has rallied 110 per cent in the year 2023 so far, while it has gained over 75 per cent in the last six months period. It is up about 30 per cent in the last one month.
Among the Tata Group companies, Tata Consultancy Services (TCS) is the most valued entity with a total market capitalization of more than Rs 12.84 lakh crore. It is also the second most value listed Indian entity after Reliance Industries, with a total market cap of more than Rs 16.21 lakh crore.
TCS is followed by Titan Company Ltd, which has total valuations of close to Rs 3.10 lakh crore. Tata Group’s automobile arm, Tata Motors Ltd, commands a total market capitalization of Rs 2.35 lakh crore. The list also included Tata Steel, which has a total valuation of Rs 1.6 lakh crore.
Trent operates a portfolio of retail concept-based chains. The primary attractions of Trent include Westside, one of India’s leading chains of fashion retail stores, Zudio, a one-stop destination for fashion at great value and Trent Hypermarket, which operates in the competitive food, grocery, and daily needs segment under the Star banner.
Trent reported a 56 per cent rise on year-on-year (YoY) basis in the consolidated net profit at Rs 289.6 crore for the September 2023 quarter. Total revenue of the company grew 59 per cent YoY to at Rs 2,891 crore, while Ebitda jumped 73 per cent to Rs 461 crore, with an Ebitda margin of 15.9 per cent for the quarter ended on September 30, 2023.
Analysts tracking the sector said that the Indian retail market is largely unorganised with large-scale opportunity in smaller cities
and towns. With increasing disposable income, consumers are opting for branded products. They said that smaller cities provide huge headroom on the back of higher disposable Income and increased participation of women in the workforce.
Axis Securities has a buy rating on Trent with a target price of Rs 2,750. “We expect strong revenue growth in the coming quarters, which will be achieved by Trent’s focus on rapid store expansion and continued assortment renewal, leading to higher overall footfall,” it said.
In addition, the improvement in the earnings profile across all formats, the reduction in losses at Star Bazaar and the improvement in traction at Inditex JV are also positive signs for the company, Axis added.
Motilal Oswal Financial Services maintained a buy on the stock with a target price of Rs 2,750, while ICICI Securities had an add rating on the stock with a target price of Rs 2,600. However, HDFC Securities gave it a ‘sell’ rating with a target price of Rs 1,650.
With Thanks Reference to: https://www.businesstoday.in/markets/company-stock/story/trent-shares-rally-to-hit-new-high-becomes-fifth-tata-group-firm-to-top-rs-1-lakh-crore-mcap-407892-2023-12-01
