Tata’s Profit Powerhouse: Stock Surges 20%, Net Profit Soars 124%, Trent Share Price Hit Upper Circuit

Tata's Profit Powerhouse: Stock Surges 20%, Net Profit Soars 124%, Trent Share Price Hit Upper Circuit

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  • Trent Ltd. is a large-cap company in the Tata Group. The company experienced a significant surge in its shares, reaching Rs 3635.00 on the Bombay Stock Exchange (BSE).
  • Due to its good quarter result, the stock hit the upper circuit of 20% today.
  • The stock jump is due to the Q3 financial results, which showed a total net profit of Rs 374.36 crore, a 124% year-on-year gain.
  • The company’s revenue for the same period soared to Rs 3466 crore, a YoY increase of 50.5% from the previous year.
  • Trent’s (EBITDA) also surged by 95%, reaching Rs 629 crore.
  • Trent’s portfolio includes 227 Westside stores, 460 Zudio stores, and 28 other lifestyle concepts.
  • The stock has consistently delivered attractive returns to shareholders, with a significant return of 425% over the past three years, and the company shares have given returns of 918% over the last five years.

About Trent Ltd.

Tata's Profit Powerhouse: Stock Surges 20%, Net Profit Soars 124%, Trent Share Price Hit Upper Circuit
  • Trent Ltd. is a retail powerhouse in the Tata Group. The company was originally incorporated as Lakme Limited in 1952 and underwent a strategic transformation in 1998 to focus on apparel retailing.
  • The company’s acquisition of Littlewoods International (India) Private Limited (LIIPL) by Lakme in March 1998 marked the beginning of Trent Ltd.’s evolution.
  • Trent Limited was amalgamated with Lakme Exports Limited in January 1998, changing its name from Lakme Limited to Trent Limited.
  • Trent operates various retail formats and concepts, including Westside, a flagship concept offering branded fashion apparel, footwear, accessories, toys, games, food, grocery, and non-food products.
  • Zudio is a Trent’s value fashion concept, that offers fashion at competitive prices for men, women, and children.
  • Trent’s hypermarket and supermarket store chain, Star, offers a range of products under the Star brand.
  • Trent’s unique brand, MISBU, offers a wide range of products for individuals to express their style.
  • Trent’s strategic focus on differentiated retail concepts and exclusive brands positions it favorably in a competitive market.
  • The company’s commitment to quality products at compelling prices and expansion plans demonstrate its resilience and adaptability in the retail landscape.

Management of Trent Ltd

NameDesignation
S N TataChairman Emeritus
P VenkatesaluExecutive Director & CEO
H BhatDirector
S GivenDirector
H RavichandarDirector
N N TataChairman
B BhatDirector
J MerchantDirector
R S GillDirector
J HoltzhausenDirector

Registered Address of Trent Ltd

Bombay House,
24, Homi Mody Street,,
Mumbai
Maharashtra
400001

Tel: 022-66658282
Fax: 022-22042081
Email: investor.relations@trent-tata.com
Website: http://www.trentlimited.com

Industry Type

SectorConsumer Services
Sub SectorSpeciality Retail
ClassificationLarge cap
Industry NameTrading
BSE Scrip Code500251
NSE Scrip CodeTRENT
ISININE849A01020

Pros of Trent Ltd

The Company is expected to give good quarter
The company has delivered good profit growth of 25.6% CAGR over last 5 years
The company has been maintaining a healthy dividend payout of 20.0%

Cons of Trent Ltd

Stock is trading at 44.0 times its book value
The company has a low return on equity of 2.59% over last 3 years.

Historical Performance

YearsLowHigh
1 Year1206.053634.70
3 Years670.003634.70
5 Years320.103634.70

Investment Returns

PeriodReturns
1 year197.37%
2 Years243.42%
3 Years421.39%
4 Years444.49%
5 Years918.35%

Dividend History of Trent Ltd

Announcement DateEx-DateDividend TypeDividend (%)Dividend (Rs)
27-04-202325-05-2023Final2202.20
27-04-202220-05-2022Final1101.10
10-02-202222-02-2022Interim600.60
30-04-202109-07-2021Final600.60
26-05-202024-07-2020Final1001.00
30-04-201919-07-2019Final1301.30
03-05-201827-07-2018Final1151.15
01-06-201719-07-2017Final1001.00
09-03-201617-03-2016Interim909.00
26-05-201527-07-2015Special252.50
27-05-201527-07-2015Final757.50
28-05-201404-08-2014Final707.00
29-05-201315-07-2013Final707.00
28-05-201223-07-2012Final656.50
25-05-201118-07-2011Final757.50
31-05-201009-08-2010Final656.50
18-06-200931-07-2009Final555.50
01-07-200816-07-2008Final707.00
30-04-200708-05-2007Interim707.00
30-06-200604-08-2006Final656.50
21-04-200529-04-2005Interim606.00
02-07-200406-08-2004Final555.50
09-06-200307-08-2003Final555.50
20-06-200213-08-2002Final00.00
30-03-200228-05-2002Interim500.00
29-06-200118-07-2001Final600.00

Chart

Tata's Profit Powerhouse: Stock Surges 20%, Net Profit Soars 124%, Trent Share Price Hit Upper Circuit
Tata's Profit Powerhouse: Stock Surges 20%, Net Profit Soars 124%, Trent Share Price Hit Upper Circuit

Fundamental Analysis of Trent Ltd

MetricValue
Market Cap₹ 1,28,263 Cr.
Current Price₹ 3,608
High / Low₹ 3,635 / 1,210
Stock P/E158
Book Value₹ 82.0
Dividend Yield0.06 %
ROCE11.5 %
ROE11.9 %
Face Value₹ 1.00
Pledged percentage0.00 %
EVEBITDA65.1
Change in Prom Hold0.00 %
Debt to equity1.66
Return on equity11.9 %
EPS₹ 23.5
Price to book value44.0
Dividend yield0.06 %
Debt₹ 4,839 Cr.

Peer Comparison

S.No.NameCMP Rs.P/EMar Cap Rs.Cr.Div Yld %ROCE %
1.Avenue Super.3717.7099.43241,877.600.0020.10
2.Trent3607.50157.88128,263.230.0611.50
3.Vedant Fashions997.4059.4724,217.440.9039.17
4.Redtape655.0553.349,059.290.0044.79
5.Electronics Mart227.2548.748,749.390.0012.00
6.Medplus Health640.60130.647,652.970.005.47
7.Ethos Ltd2629.6087.756,148.640.0017.43

Shareholding of Trent Ltd

HoldersMar-20Mar-21Mar-22Mar-23Dec-23
Promoters 37.01%37.01%37.01%37.01%37.01%
FIIs 21.18%29.90%28.32%24.43%25.91%
DIIs 15.59%10.27%13.43%16.10%14.82%
Public 26.22%22.83%21.24%22.45%22.26%
Govt.
Others

Last 5 Years’ Sales (In Cr.)

March 2019March 2020March 2021March 2022March 2023
2,6303,4862,5934,4988,242

Last 5 Years’ Net Profit (In Cr.)

March 2019March 2020March 2021March 2022March 2023
95106-18135394

Balance Sheet of Trent Ltd (In Cr.)

 Mar-20Mar-21Mar-22Mar-23Sep-23
Equity Capital3636363636
Reserves2,3522,2772,3282,5602,878
Preference Capital0000 
Borrowings 3003004,7254,4644,839
Other Liabilities 2,8193,1116371,0221,186
Total Liabilities5,5075,7247,7268,0828,939
Fixed Assets 2,7383,0544,6874,5274,986
CWIP23108105102166
Investments1,5151,4871,2841,1101,225
Other Assets 1,2301,0751,6512,3432,562
Total Assets5,5075,7247,7268,0828,939

Compounded Sales Growth

10 Years:14%
5 Years:31%
3 Years:33%
TTM:52%

Compounded Profit Growth

10 Years:33%
5 Years:26%
3 Years:47%
TTM:148%

CAGR

10 Years:43%
5 Years:60%
3 Years:74%
1 Year:197%

Return on Equity

10 Years:4%
5 Years:3%
3 Years:3%
Last Year:12%

Cash Flow (In Cr.)

ParticularsMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Operating Activities2136128558595
Investing Activities-37-8091856-103
Financing Activities37452-283-108-491
Net Cash Flow2152061

Revenue and Profit Trend

Financial YearRevenue GrowthProfit Growth
FY 2022-2398.81%122.16%
FY 2021-2289.53%-589.28%
FY 2020-21-35.57%-133.01%
FY 2019-2025.52%21.25%
FY 2018-1922.52%9.22%

Also Read – Healthcare Stock Declares a Second Interim Dividend of Rs 12/-: Is It a Buy Opportunity?

Conclusion

This is a comprehensive guide to Trent Ltd. The above-mentioned information and data are as of February 07, 2024. These figures and projections are based on our research, analysis, company fundamentals and history, experiences, and numerous technical analyses. In addition, we have discussed in depth the share’s prospects and growth potential. Hopefully, these details will be useful in your future investments.

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Disclaimer: Dear Readers, we are not authorized by SEBI (Securities and Exchange Board of India). The information provided above is for educational purposes and should not be considered financial advice or stock recommendations. Share price predictions are for reference purposes and are based on positive market indicators. The analysis does not account for uncertainties about future or current market conditions. The author, brokerage firm, or Finreturns.com are not liable for losses resulting from decisions. Finreturns.com advises consulting with certified experts before investment decisions.

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