Tata Group Stocks: The retail sector saw a significant comeback during FY2022. It is expected to pick up pace in the new financial year as well. In the recent fall in the market, many stocks are looking at attractive prices. One of these shares is Tata Group’s stock Trent Ltd. Trent Limited is growing rapidly on the growth track. If you want to include a strong stock for the portfolio in the volatile market, then Trent Limited is a good option. The brokerage firm Sharekhan has given a buying opinion in Trent. Trent’s stock is getting about 23 percent discount from its one-year record high. Market veteran Radhakrishna Damani has also invested in Tata Group’s retail company Trent.
Trent Ltd: What is the opinion of the brokerage
Brokerage firm Sharekhan says that Trent’s performance in FY2022 was the best in the industry due to strong business model, strong supply chain and aggressive store expansion. However, during this period, some business interruptions were also seen due to the second and third wave of Corona. Its effect was also seen on the performance of the company.
The brokerage says, during FY2020-22, Trent’s revenue grew at a CAGR of over 110 per cent and net profit of more than 30 per cent. During the financial year 2022, the company has opened 139 stores in different formats. It has 26 Westside and 100 Judio stores. With this expansion, the total number of stores has gone up to 550.
According to Sharekhan, the company’s leading brands Westside and Judio’s stores grew 41 percent (YoY). The company has raised funds through internal cash flow and issuance of equity shares to the promoters. There was cash of Rs 520 crore in the books of the company at the end of the year. However, in FY2022, the working capital has been affected due to higher inventories. It is believed that the working capital of the company will improve in the next few years.
Trent Ltd: 37% return expected
Brokerage firm Sharekhan has given a buy opinion on the shares of Trent. Also the target price per share has been Rs 1415. The share price closed at Rs 1030 on 23 June 2022. In this way, investors can get a strong return of about 37 percent from the current price. Despite the huge volatility in the market, the stock has gained more than 20 percent in the last one year. The stock is trading at a discount of around 23 per cent from its 52-week high. Trent’s stock made a record high of Rs 1347 on 7 April 2022.
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Radhakishan Damani’s investment
Radhakishan Damani, who is said to be the guru of Rakesh Jhunjhunwala, a veteran investor in the stock market, also joined Trent Ltd. has invested in. Damani’s total stake in this company is 1.5 percent (5,421,131 equity shares). This stock has been included in his portfolio for a long time. He did not make any change in the shareholding pattern in the March 2022 quarter.
The Tata Group operates the retail business through Trent Limited. 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, Trent Food, through Star Bazaar JV, operates hypermarkets in the grocery and daily need segments. At the same time, the Landmark Store is the company’s family entertainment format.
(Disclaimer: The investment advice here is given by the brokerage. These are not the views of Zee Business. Please consult your advisor before investing.)