TRENT NOW AMONG INDIA'S TOP 50 COMPANIES AS MARKET CAP CROSSES ₹2 LAKH CRORE

An 87% rally in shares of Tata Group's Trent Ltd. since the beginning of the year has taken the company's market capitalisation of the company to over ₹2 lakh crore. The retail arm of the Tata group also became the fifth company from the stable to achieve the milestone, after Tata Consultancy Services (TCS), Tata Motors, Titan and Tata Steel.

Shares of Trent added another 2% on Friday to hit a fresh record high of ₹5,635.95 on the NSE. The stock has surged over 6.5% during the week against a little over 1% gains yielded by the benchmark Nifty 50 during the same period.

Interestingly, the latest exuberance in shares of Trent is a continuation of the last year’s outperformance in which the stock had more than doubled in value, gaining 126%. The company has been reporting consistent strong performance in the retail universe by delivering double-digit same-store-sales growth, that too in a weak discretionary environment.

Analysts at Sharekhan observe that Innovation in product portfolio, 100% contribution from own brands, aggressive store expansions, scaling up of the Star business and leveraging on digital presence will be key growth drivers for the stock in the medium term.

This consistent outperformance in shares of Trent has also boosted its weightage among the Tata Group companies. On an aggregate basis, the company's share within the Tata Group market capitalisation has jumped four-fold to 6.3% from 1.5% in May 2020. Tata Group, the country's largest conglomerate boasts of a market capitalisation of over ₹32 lakh crore.

Including Trent, there are only 46 companies in the country which command a minimum market valuation of ₹2 lakh crore or more.

Trent delivered robust set of number in financial year 2024, led by consistent double-digit same-store-sales growth and scale-up in performance of new verticals (including Zudio). While net profit of the company surged more than three-fold to ₹1,487 crore, it reported a 50% increase in net revenue, which stood at ₹12,368 crore.

Out of the 20 analysts that have coverage on Trent, 13 of them have a "buy" recommendation, five of them say "hold", while two of them have a "sell" rating. The consensus price targets among all analysts tracked implies a potential downside of 17.1% on the stock in the next 12 months.

Shares of Trent are trading 0.6% higher at ₹5,631. The stock has gained in every single month this calendar year.

2024-07-05T06:42:33Z dg43tfdfdgfd