Tata Group Shares: If you want to include a strong stock in the portfolio amidst a volatile market, Tata Group retail share Trent Limited is a good option. Over the past 6 months, Trent’s stock has gained about 6%. At the same time, the stock has jumped more than 5% in the past month. Despite the huge market drop, Trent’s stock remained in the green. Brokerage Motilal Oswal has issued a buy advice on the Tata Group’s retail sector share. Veteran market investor Radhakishan Damani invested in Trent. Damani holds a 1.5% stake in the company.
Thirty: 31% return possible
Brokerage firm Motilal Oswal has included Trent stock in its investment idea. A target of Rs 1430 per share was maintained on the title. The stock stood at 1092 on June 13, 2022. This way the stock can earn a high yield of around 31% from the current price. In April this year, 52 weeks high (Rs 1347) was achieved. From this record, there was a correction of about 19 percent in the stock. The Trent stock has returned about 26 percent over the past year. At the same time, this stock turned out to be a multibagger in 5 years. In this, investors have obtained returns of over 340%.
Trent: What is the opinion of the brokerage
Brokerage Motilal Oswal says that despite the impact of COVID-19 over the past two years, Trent’s own-source and PAT growth has been good. In fiscal 2020, there was growth of 11% CAGR in revenue and 27% CAGR in net profit. This is the best peer growth. In FY20-22, consolidated EBITDA grew at a CAGR of 7% and stood at Rs 230 crore. The performance of the company’s Zudio brand was strong, while Westside also enjoyed good support. Zudio added an additional 100 Westside 26 stores to the network in fiscal 2022. Over the past two years, Westside stores have grown by 30% and Zudio stores by 51%. Trent has grown aggressively. Revenue growth was 53% in 4Q22, driven by strong year-on-year growth of 16%.
Due to Trent’s strong store performance, healthy store economics and aggressive growth strategy, the business can experience strong growth over the next 3-5 years. The company’s goal is to increase revenue growth by 25% each year during this period. The brokerage estimates the company can achieve 37% revenue growth in FY22-24. Speaking of near-term risk, demand is expected to remain weak in Tier 2 and Tier 3 cities.
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Damani invested in Trento
Stock market veteran RK Damani has invested in Tata Group’s Trent stock. According to Trent Ltd shareholding chart for the March 2022 quarter (Q4FY22) available on the BSE, Radhakishan Damani holds a 1.5% stake (5,421,131 shares) in the company. He hasn’t sold a single share of the company in recent quarters. Damani currently has 14 shares in the portfolio, the net worth of the stake as of June 13, 2022 is over Rs 173,822 crore. Let us tell you that Tata Group operates a retail business through Trent Limited. Damani is said to be the guru of Rakesh Jhunjhunwala, the “Big Bull” of the market.
(Disclaimer: The investment advice here is provided by the brokerage. It is not the view of Zee Business. The markets are risky, so take expert advice before investing.)
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