Tata Group Stocks: Trent’s Shares Not Showing Much Momentum Today
– Trent, the company that sells clothes under the brand Westside, did not show much momentum in its shares today despite its impressive performance in the fiscal year 2023.
– Domestic brokerage firm Motilal Oswal is recommending investing in it due to its excellent performance in the coming years.
– The company’s current valuation is slightly expensive, but its buying rating has been maintained.
– According to Motilal Oswal, its shares can reach up to Rs. 1825, which is around 18% higher than the current level.
– Tata Group’s shares of this company closed at Rs. 1,605 on the BSE with a 0.28% increase today.
Why does the brokerage have so much trust in Trent of Tata Group?
– According to the financial results of the fiscal year 2023, Trent has fully recovered from the COVID-19 pandemic’s impact.
– Its revenue in 2022-23 has not only doubled, but it has also shown significant improvement in profits.
– It has generated a free cash flow of Rs. 370 crore on a consolidated basis.
– The strategy of operating franchised stores with strict cost controls and ownership rights has helped the company to cope with the impact of rising raw material prices.
– Despite expanding its hypermarket chain Star Bazaar aggressively, it has managed to maintain the balance sheet’s risk or any weakness in operations.
What is the future outlook for Trent’s shares?
– The brokerage’s estimate is that there will be a decrease in raw material prices in the future, which will improve its gross margin.
– The growth of Trent’s Westside and Zudio brand revenue has been impressive, and the brokerage believes that its growth will continue due to Star Bazaar’s strong market position.
– Its current valuation is quite expensive, but considering the company’s high growth, the brokerage believes that its valuation is justified.
– Therefore, the buying rating of Trent’s shares has been maintained at the target price of Rs. 1825.
What has been the trend in Trent’s shares in the past year?
– Trent’s shares were at a low of Rs. 1009 one year ago on June 22, 2022.
– However, in the past year, it has risen by more than 60% to reach a record high of Rs. 1618.95 today.
– Although there has been a slight slowdown in the price due to profit booking, experts believe that it will go higher from the current level.
Disclaimer: The advice or views given by experts/brokerage firms on Moneycontrol.com are their own private views and not the responsibility of the website or management. Users are advised to always seek the advice of a certified expert before making any investment decisions.
Follow DelhiBreakings on Google News
Superfast News Coverage by DelhiBreakings.com team.
For Superfast national news and Delhi Breaking Stories visit us daily at https://delhibreakings.com