Tata Group stock hits record high, enters top 100 most valued companies list

Market


Shares of Trent surged to hit an all-time high level of 1,479 apiece on the BSE in Wednesday’s trading session with its market capitalisation crossing the 50,000 crore mark and entering the list of top 100 companies by market capitalization. The stock has rallied about 11% in the past five trading sessions, and is up over 39% in 2022 (YTD) so far.

The Tata group firm’s retail arm Trent Ltd reported a consolidated net profit of 115 crore in the first quarter of the current financial year as compared to a net loss of 138 crore in the year-ago quarter. Its revenue from operations during the quarter under review stood at 1,803 crore, up over three-fold from the pandemic-hit corresponding quarter a year ago of 492 crore.

“The group’s financial performance for the corresponding quarter of the previous year had been impacted by Covid-related business disruptions. The relative operating performance for a few weeks in Q4FY22 had also got impacted due to temporary restrictions imposed in wake of the third Covid wave. However, Covid-related disruptions have declined thereafter,” said Trent.

“Trent reported a superlative performance with industry best revenue growth and strong beat on almost all parameters (change in useful life of certain stores impacted PAT). Robust performance during challenging times and industry leading performance will continue to warrant premium valuations for Trent. Liquidity position remains robust with cash & investments worth,” said brokerage ICICI Securities in Trent’s earnings report.

Zudio continues to be the growth engine for Trent. We expect revenues to grow at a CAGR of 50% in FY22-24E. In the long run, the company aims to grow its revenue at CAGR of 25%+, it added.

Trent is one of the leading players in the branded retail industry in India. 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.

Its also has brands including value fashion concept – Zudio, hypermarket and supermarket store chain – Operating under ‘Star Market’ and a family entertainment concept – Landmark which offers a curated range of toys, frontlist books, stationery and sports merchandise.

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