Tata Trent's Q4 Profit Decreases, but Brokerages Remain Bullish; Stock Shows 28% Upside Potential, Buy Recommendation Maintained. Investor Confidence Remains.
Tata Stock: Trent Limited, Tata Group's retail company, reported weaker results for the fourth quarter of fiscal year 2024. Despite this, leading Indian brokerage firms remain optimistic about the stock, projecting a potential increase of up to 28% in the coming months.
Quarterly Results: Profit Decline, but Revenue and Margin Improvement
Trent's net profit for the January-March 2024 quarter decreased by over 50% to ₹311.60 crore, compared to ₹712.09 crore in the same quarter of the previous year. However, the company's total revenue increased to ₹4216.94 crore, up from ₹3297.70 crore in the previous year.
The company's EBITDA stood at ₹656.39 crore, with the EBITDA margin increasing to 16%.
Brokerage Reports: Buy Recommendation and Target Price
1 Motilal Oswal maintained a "BUY" rating on Trent with a target price of ₹6,900, indicating a potential increase of approximately 28% from the current price.
2 Antique Broking also recommended a buy, setting a target price of ₹6,646.
3 Nuvama maintained a positive outlook on Trent, giving a target price of ₹6,224.
4 Axis Securities also maintained its "BUY" rating and provided a revised target price of ₹6,650.
These brokerage firms believe that the company's brands, such as Zudio and Westside, maintain a b foothold in India, and retail expansion will support future growth.
Dividend and Stock Performance
The company's board proposed a dividend of ₹5 per share for FY25. This compares to ₹3.20 in FY24 and ₹2.20 in FY23.
The stock is currently trading at ₹5380, approximately 36% below its 52-week high of ₹8,345.85.
Regarding recent performance:
Approximately stable in the last 1 month
- 5% decline in 3 months
- 27.94% decline in 6 months
- 18.53% return in 1 year
- 282.36% multibagger return in 2 years
