Unbelievable Surge: Tata Group’s Trent Shares Skyrocket 1,154% in 4 Years, Outpacing Sensex for a Decade!
Trent Shares Soar Amid Positive Market Sentiment and Strong Growth Outlook
Last Updated: Sep 26, 2024 | 11:27 AM IST
Shares of Trent, a Tata Group company, reached a record high of Rs 7,939.90 on Thursday, marking a 4% increase during intra-day trading on the National Stock Exchange (NSE). This surge followed Citi’s initiation of coverage on the stock with a ‘Buy’ rating and a target price of Rs 9,250, citing a robust growth outlook.
The NSE had earlier announced, in a semi-annual review, that Trent and Bharat Electronics (BEL) would replace Divi’s Laboratories and LTI Mindtree in the Nifty 50 index effective September 30.
Year-to-date in 2024, Trent’s stock price has skyrocketed by 160%, significantly outpacing the 18% gain of the BSE Sensex. This continues a trend of outperformance over the past decade. Remarkably, since the stock split from Rs 10 to Re 1 in 2016, Trent’s market price has surged by 3,285%.
Trent, which operates a portfolio of retail stores under brands like Westside, Zudio, Star, and more, reported a 57% year-on-year rise in revenue for Q1FY25, reaching Rs 3,992 crore. The growth was driven by increased footfalls and strong performances across various categories, even amidst subdued market sentiments.
Axis Securities anticipates continued strong sales growth due to Trent’s rapid store expansion and consistent assortment renewal. Trent’s shift towards a small-format store model for Star Food, focusing on fresh produce and private labels, has also yielded positive results.
The Indian retail industry is expected to grow to $4.5 trillion by the end of the decade, driven by factors such as urbanization and income growth. Meanwhile, India’s apparel market is projected at Rs 6.5 trillion in 2024, with organized players accounting for 40%.
In summary, Trent’s transformation and strategic expansion are paying off, making it a notable player in India’s retail sector and an attractive investment as cited by various brokerage firms.
Original Story https://www.business-standard.com/markets/news/this-tata-group-stock-beat-sensex-for-a-decade-zoomed-160-thus-far-in-2024-124092600239_1.html
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