Trent’s standalone revenue and PAT growth has been a confidence booster even after the impact of COVID-19. Among these, during FY20 to FY22, there was a CAGR growth of 11 percent and 27 percent.
Tata Group Multibagger Stock: Tata Group’s multibagger stock Trent Ltd has gained 5 per cent so far this year. At the same time, the stock has been 7 percent strong during the last 1 month. This year, where many stocks weakened in the fall of the market, Trent remained strong. However, there has also been a correction in the stock from the high of Rs 1347 in April this year. At present, brokerage house Motilal Oswal has given buy advice on this multibagger share of Tata Group and has expressed expectation of 28 percent upside from the current price. Stock market veteran Radhakishan Damani has also invested in Trent Ltd. He has had faith in this stock for a long time. He has not sold a single share of the company in the March quarter. The stock has given 350 per cent returns in the last 5 years.
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Better growth even after COVID-19
Brokerage House Motilal Oswal has given Buying advice for the stock while maintaining the target price of Rs 1,430. The current price of the share is Rs 1114, that is, there is a scope of 28 percent increase in it. The brokerage says that even after the impact of COVID-19, the standalone revenue and PAT growth of Trent has been a confidence booster. In these, during FY20 to FY22, 11 percent CAGR and 27 percent CAGR growth was seen. This is the best growth in the piers. Conso Conso EBITDA grew at 7 per cent CAGR during FY20-22 and stood at Rs 230 crore. The performance of the company’s brand Zudio was strong, while there has also been good support from Westside. Zudio and Westside have added 170 and 40 stores to the network in 2 years.
Growth story expected to continue
The brokerage says that due to Trent’s successful store performance, healthy store economics and aggressive strategy for growth, the company can see strong growth in the next 3 to 5 years. The company’s target is to increase revenue growth by 25 percent every year during this period. The brokerage estimates that the company can achieve 37% revenue growth during FY22-24. Talking about the near term risk, the demand is to remain weak in Tier 2 and Tier 3 cities.
What is the share of Radhakishan Damani?
As per the shareholding pattern for the March 2022 (Q4FY22) quarter of Trent Ltd available on Trendline and BSE website, Radhakishan Damani holds 1.5 per cent stake in the company. The company has 54,21,131 shares in his portfolio. In the December quarter too, he had only 1.5 per cent stake in the company. He has not sold a single share of the company for several quarters. The value of Damani’s holding in the company as on 19 April 2022 is Rs 663.3 crore.
Tata Group operates retail business through Trent Ltd. Operates stores in Trent in 5 different formats. Fashion retail includes Westside, Zudio (value fashion retail) and Zara JV (premium fashion retail). At the same time, through Star Bazaar JV, it operates hypermarkets in the food, grocery and daily need segments. Whereas, the Landmark Store is the company’s family entertainment format.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)