Shares of this large-cap stock under the Tata Group universe are trading in the green after the company’s subsidiary bought a stake in an online retail trade company. In the last six months, the stock has gained more than 50 percent.
With a market capitalization of Rs 73,541.47 crores, the stocks of Trent Limited, a Tata Group entity, opened their trading hour on Wednesday at Rs 2,052.35 and currently trade at Rs 2,068.75, a flat movement as compared to the previous closing price of Rs 2,057.15 apiece.
The company, via a regulatory filing with the Bombay Stock Exchange (BSE), announced “Booker India Limited”, a subsidiary company of Trent Limited, acquiring approximately 4.95% of the equity share capital of its subsidiary “Fiora Online Limited” (FOL) from a shareholder.
FOL is involved in the business of online retail trade under the brand name ‘Starquik’. The acquisition was completed on the 12th of September 2023, and, it involved a consideration of Rs 4.10 crores for the same.
During the recent quarters, the company’s financial performance has shown decent improvements with the operating revenues moving up from Rs 2,182.75 crores during Q4FY22-23 to Rs 2,628.37 crores during Q1FY23-24. Moreover, the after-tax profits, in congruence with the pattern, increased from Rs 38.35 crores to Rs 140.08 crores during the same time period.
The company has exhibited efficiency in operations which is supported by increasing profitability ratios.
The return on equity (RoE), as well as the return on capital employed (RoCE), have gone up with the former increasing from 4.47 percent during FY21-22 to 17.13 percent during FY22-23, and, the latter, moving from 6.19 percent to 12.03 percent keeping the timeframe the same.
As per the June 2023 quarter, the company’s shareholding pattern represents the Promoters holding a 37.01 percent stake, and the Foreign Institutional Investors (FIIs) holding a considerable stake of 20.48 percent in the company.
Trent Limited, in association with its subsidiaries, operates a chain of retail stores. It offers various brands across men’s & women’s wear, footwear, cosmetics, perfumes, and other accessories.
Written by Amit Madnani
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