Rs 1,345 to Rs 7,032: This Tata Group stock gave multibagger returns in 2 years; hit record high in previous session

Shares of multibagger Trent Ltd have delivered stellar returns in the last two years. The Tata Group stock, which closed at Rs 1345 on August 23, 2022 hit a record high of Rs 7032 in the previous session. Later, the stock closed at Rs 6,950, delivering 416% returns in two years. The multibagger stock is overbought on charts as the relative strength index (RSI) of the stock stands at 77.3. Trent stock stands higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages which means its trading in bullish  zone in both long and short terms.

It has seen low volatility in the last one year with its beta at 0.8.

The stock hit a record high of Rs 7032 on Friday, rising 0.55% against its previous close of Rs 6993.65 on BSE.

Total 0.52 lakh shares of the firm changed hands amounting to a turnover of Rs 36.34 crore on BSE. Market cap of the firm stood at Rs 2.47 lakh crore on BSE. The Tata Group's multibagger stock hit a 52-week low of Rs 1946.5 on October 26, 2023.

The Tata Group firm clocked a 225% year-on-year rise in consolidated net profit for the June quarter. Net profit climbed to Rs 391 crore in Q1 against net profit of Rs 167 crore in the corresponding quarter of last fiscal. Revenues rose 56% to Rs 4104 crore compared to Rs 2628 crore in the corresponding quarter a year ago. 

EBITDA or earnings before interest, taxes, depreciation and amortisation zoomed 199% on-year to Rs 400 crore against Rs 266 crore in the year-ago quarter. 

 Brokerages have mixed views on the Tata Group stock post Q1 earnings.

Motilal Oswal said,"Adjusting the value of Star and Zara, the stock is trading at 90 times PE on FY26E for the Standalone business. We reiterate our 'buy' rating" it said, with a target price of Rs 7,040.

The brokerage added that Trent's strong performance with double-digit LFL growth and robust footprint additions remains an outlier within our retail coverage universe, which is witnessing a challenging demand environment.

 Axis Securities has a price target of Rs 7,000 for the stock. It expects robust revenue growth for Trent in the coming quarters, led by increased footfall, strong performance across categories and channels, and continued store expansion.

“Additionally, enhanced earnings across all formats, reduced losses at Star Bazaar, and improved traction at the Inditex JV signal positive momentum for the company. In recent years, Trent's adoption of a small-format store model for Star Food, emphasizing sharp pricing and a focus on fresh produce and private labels, has delivered promising results,” added Axis Securities

Amidst the discretionary slowdown, Trent stands tall despite the headwinds of elections and the heatwave. It has positively surprised us in Q1 in terms of both top-line and margins, said HDFC Securities. However, we’ve been batting for a while now to realign Zara’s valuation stencils from growth multiples to net asset value," it added with a 'sell' tag and a target price of Rs 3,700.

Trent Limited is part of the Tata Group and operates a portfolio of retail concepts. The primary customer propositions of Trent include Westside, one of India's leading chains of fashion retail stores, Zudio, a one stop destination for great fashion at great value and Star, which operates in the competitive food, grocery and daily needs segment.