Multibagger Tata Stock Gains 13% In 1-Week As Net Jumps Nearly 3-Fold, Buy?

Leading large cap Tata Group stock Trent shares witnessed a sharp rally of 13% in last 1-week only as the company announced approximately 3-fold jump in its consolidated net profit to Rs 228.06 crore for the September quarter. It declared its consolidated net profit at Rs 78.94 crore, as per the regulatory filing. Last trading price of Trent Ltd stock on BSE is Rs 2476.25 per share with intraday gain of 0.96%. Trent shares soared 119% in last 2-years and gained 84% YTD. Check details below:

Trent Q2 Results: The company announced its Q2 result on November 7, 2023 and ever since the stock has been witnessing an upward rally. Trent shares hit 52-week high on November 7 and November 8. The stock witnessed spurt in volume today by more than 2.35 times and by 5.26 times on November 7, 2023. The company's consolidated revenue from operations arrived at Rs 2,982.42 crore as against Rs 1952.74 crore in the year ago period, as per its BSE filing. Its earnings before interest, tax, depreciation and amortization (EBIDTA) declared at Rs 461 crore, up by 73% and EBIDTA margin came at 15.9% as against 14.7% in the year ago period.

Trent Stock Performance & Return: Current market price of Trent share on BSE is Rs 2472.55 per share with intraday gain of 0.81%. Its 52-week high price is Rs 2504.95 per share and 52-week low price is Rs 1151.10 apiece, respectively. The company's market capitalisation is Rs 87,896.05 crore. Trent stock surged 73% in last 6-months, gained 65% in last 1-year, rose 119% in last 2-years, and jumped 263% in last 3-years. In last 5-years, Trent shares gave return of 655%.

Valuation: According to brokerage firm Jefferies, "Trent is a structural story on the growing organised apparel market in India. However, expensive valuations keep us on the sideline. Maintain hold.

In case of an upside situation, Jefferies sees 40% CAGR in standalone sales over FY 2023-26. With a stronger balance sheet, Trent is better placed to fund growth and gain market share from peers and the unorganised market. Zara JV would see a strong recovery, on both the revenue and margin fronts. Overall, we assign an SoTP-based price target of Rs 3,200S," stated Jefferies.

Meanwhile, in the downside situation, Jefferies expects a 32% CAGR in standalone sales over FY23-26. "While share of online would grow, Trent faces aggressive competition from e-commerce majors in this channel. Zara JV, being dependent on malls, is impacted to a greater extent. In this scenario, Overall, we assign a price target of Rs 1,450," Jefferies said.

Brokerage firm Nuvama Institutional Equities assigned buy call with target price of Rs 2855 apiece (earlier it was 2119).

Trent About: As part of the Tata group, Trent's flagship concept, Westside offers branded fashion apparel, footwear and accessories for women, men and children, along with a range of home furnishings & decor. This offer is presented through a differentiated portfolio of exclusive brands that are in tune with latest fashion trends appealing to a wide spectrum of style conscious consumers across defined customer segments, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of Jefferies and Nuvama. 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 check with certified experts before taking any investment decision.