This Tata Group stock engaged in apparel, footwear, accessories, groceries, and many more reached its 52-week high after being included in the Nifty50 index.
Share Price Variation
In Monday’s trading session, Trent Limited’s share price reached a 52-week high of Rs.7,090, marking a 2 percent increase from its previous close of Rs.6,950.05. The stock has since retreated from this peak and is trading at Rs.6,991 per share.
Rationale for Rise
Trent Limited’s share price increased in early trading on Monday after the NSE Indices Committee announced that the stock would be added to the Nifty50 index as part of the September 2024 rebalancing.
The upcoming index adjustments are scheduled for September 27, with changes coming into effect on September 30.
Nuvama Alternative & Quantitative Research, a domestic brokerage firm, projects that Trent Limited will experience a significant net inflow of $470 million.
Another entrant to the Nifty50 Index is Bharat Electronics (BEL) with an approximate inflow of $410 million, while Divi’s Laboratories and LTIMindtree will be moved out of the Nifty50 and into the Nifty Next 50 index.
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Extensive Reach
Trent has around 11 million square feet of retail space, over 10 million WestStyleClub members, and over 890 stores across 170 cities.
Brand Diversity
Trent’s portfolio includes a diverse range of well-known brands, such as Westside, Zudio, STAR, UTSA, and SAMOH. Each of these brands features its own set of sub-brands within their respective stores.
Financial Performance
Turning towards the financials of the company, for Q1 FY25, the company reported consolidated revenue of Rs.4,104 crore, a notable 56.16 percent increase from Rs.2,628 crore in the same quarter last year and a 24.43 percent rise from Rs.3,298 crore in Q4 FY24.
In terms of net profit, Trent Limited earned Rs.391 crore in Q1 FY25, reflecting a 134 percent increase from Rs.167 crore in Q1 FY24. However, the net profit declined by 45 percent from Rs.712 crore in Q4 FY24.
Company Overview
Trent Ltd, a subsidiary of the Tata Group, operates retail chains across India. The company runs department stores, hypermarkets, supermarkets, and specialty stores, offering a wide range of products such as clothing, footwear, cosmetics, perfumes, handbags, home furniture, and accessories.
Written by – Siddesh S Raskar
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