This Tata Group stock engaged in apparel, footwear, accessories, groceries, and many more reached its 52-week high and surged around 5 percent after reputed brokerage firm Citi Group set a target price indicating potential upside growth.
Share Price Variation
In Thursday’s trading session, Trent Limited‘s share price reached a 52-week high of Rs.7,939 per share, marking a 4.4 percent increase from its previous close of Rs.7609.60 apiece. The stock has since retreated from this peak and is trading at Rs.7,794 per share.
Rationale for Rise
Trent Limited secured a “Buy” rating from reputed brokerage Citi Group with a target price of Rs.9,250 per share, suggesting a potential upside of 19 percent from the current price.
Over the past five years, Trent shares have delivered an impressive return of 1500 percent, reflecting the company’s strong performance and investor confidence. This year alone, the shares have shown remarkable growth, rising by 160 percent since the start of 2024.
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According to Citi, Trent is well-positioned to expand its pilot projects, including MISBU, Samoh, and its joint venture with MAS. These initiatives have prompted Citi to include Trent in its Pan-Asia high-conviction focus list, highlighting the firm’s confidence in the company’s future growth trajectory.
Expansion Plans
Citi emphasized that Trent’s evolution from a single-format to a multi-format retail player has been a crucial factor in its success. This strategic transition enabled the company to achieve a 36 percent compound annual growth rate (CAGR) in revenue from FY19 to FY24.
As a diversified player across fashion, lifestyle, grocery, and personal care categories, Trent has reported industry-leading financial metrics, with revenue, EBITDA, and PAT CAGRs of 41 percent, 44 percent, and 56 percent, respectively, for FY24–27.
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.
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Written by – Siddesh S Raskar
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