Buy Now! Tata Group Stock Surges 123% in 2023, Hits 52-Week High

Tata Group Stock Achieves Pinnacle with 123% Surge in 2023: A Lucrative Buy Opportunity?

Experiencing a remarkable ascent, the large-cap Tata Group stock, Trent Ltd, witnessed an impressive 122.68% gain in the last year and surged by 44.71% in the preceding three months. Despite reaching a fresh 52-week high today, Trent shares observed a slight decline of 1.76% until 3:22 pm. Operating in the specialty retail industry, the company boasts a substantial market capitalization of Rs 1,06,896.86 crore.

Earlier this year, Trent declared a dividend of Rs 2.20, with the ex-dividend date set on May 25, 2023. Delving into Trent’s stock performance and returns over the years, the current market price stands at Rs 3000.05 per share on BSE. Notably, the 52-week high and low prices are Rs 3089.60 and Rs 1,155.10 per share, respectively. Trent Ltd’s shares exhibited a commendable 71% surge in the last six months, a remarkable 123% gain in the past year, a soaring 182% increase in the last two years, and an impressive 345% jump in the last three years. Over the last five years, Trent stock has surged an impressive 733%, offering investors substantial returns. The decade-long analysis reveals Trent shares delivering an exceptional return of 2344%.

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Analyzing Trent’s valuation, a report by Motilal Oswal dated December 11, 2023, assigns a 37x EV/EBITDA to the standalone business (Westside and Zudio). Additionally, it applies 2x EV/sales to Star Bazaar and 15x EV/EBITDA to Zara on Sep’25E, arriving at a target price of INR 3,140. The report maintains a BUY rating on the stock, emphasizing Trent’s industry-leading revenue growth fueled by healthy SSSG, robust footprint additions, and significant growth prospects in Zudio.

The financials for the July to September quarter in 2023 showcase Trent’s consolidated net profit surging by 189% to Rs 228 crore, compared to Rs 78.94 crore in the corresponding quarter of the previous fiscal year. Consolidated revenue witnessed a robust 52.7% YoY growth, reaching Rs 2,982 crore from Rs 1,953 crore in the same quarter the previous year. The company’s net income for Q2 of the current fiscal stands at Rs 3,062 crore, with EBITDA declared at Rs 456.57 crore, reflecting a 78.5% YoY increase. The EBITDA margin expanded to 15.3%, up from 13.1% YoY.

Trent Ltd, as a flagship concept of the Tata group, is renowned for Westside, offering a diverse portfolio of branded fashion apparel, footwear, accessories, and home furnishings. The company’s commitment to aligning with the latest fashion trends positions it as a preferred choice for style-conscious consumers.

Disclaimer: The stock insights are derived from the brokerage report of Motilal Oswal. Greynium Information Technologies, the author, and the respective brokerage house disclaim liability for any losses resulting from decisions based on this article. Investopedia.co.in advises users to consult certified experts before making any investment decisions.