Multibagger Tata Group stock delivers single-digit returns in a year, can it bounce back?

Shares of Trent Ltd-the Tata Group's retail arm-have delivered single digit returns in a year. Trent shares gained 7% in a year. The stock seems to have lost its shine in the short term falling 19% this year and rising 9% in three months.  However, the Tata Group share rose 235% in two years and 450% in three years, reflecting multibagger returns in the long term. The multibagger stock zoomed nearly 1,000% in five years. 

The Tata Group stock closed at Rs 5732.90 on BSE. Market cap of the firm stood at Rs 2.06 lakh crore on BSE. 

The Tata Group's multibagger stock slipped to a 52-week low of Rs 4491.75 on April 7, 2025. Trent shares have a beta of 1.48, indicating high volatility in a year. 

In terms of technicals, the relative strength index (RSI) of the stock stands at 56.6, signaling it's trading neither in the overbought nor in the oversold zone. Trent stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and lower than the 150 day and 200 day moving averages.    
Global brokerage Macquarie has projected a 26% potential upside on the stock from its previous closing price.

The brokerage has an 'outperform' rating with a price target of Rs 7,200 per share. 

Trent, in its analyst meet, said it aims for sales to grow at a Compounded Annual Growth Rate (CAGR) of 25% over the next decade, backed by store expansion, and expansion into adjacent categories, along with cost control initiatives.

The brokerage has a cautious stance on Trent's Star grocery format due to competition from quick commerce and limited historical examples of success of private brands in the grocery segment.

Macquarie also believes tech investments in the supply chain can raise Trent's competitive lead in comparison to its peers for the fashion formats.

Domestic brokerage Motilal Oswal has a buy call on the stock with a target price of Rs 6,900 per share.

Back-end store additions in Zudio are likely to boost growth in FY26, the brokerage said adding that recovery in same store sales growth (SSSG) across fashion and Star formats would be a key near-term monitorable.

Jefferies has a 'hold' call on the stock with a target price of Rs 5,900. The global brokerage said organic growth was preferred over merger and acquisitions. The company's focus is on propositions, which are repeatable, it added.

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.