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Trent: 380% return in 5 years, Tata Group stock will rise further, market leader RK Damani’s confidence remains intact

The stock of Trent has proved to be a multibagger for the last 5 years and 1 year. Brokerage house Motilal Oswal has given buy advice on this multibagger share of Tata Group.

Tata Group Multibagger Stock: Today Tata Group’s stock Trent Ltd is seeing a rise. The stock has gained about 4.5 percent in intraday and has reached a price of Rs 1278. By the way, the stock has proved to be a multibagger of the last 5 years and 1 year. Brokerage house Motilal Oswal has given buy advice on this multibagger share of Tata Group and has expressed expectation of 16 percent upside from the current price. Stock market veteran and Rakesh Jhunjhunwala’s guru Radhakishan Damani has also invested in Trent Ltd. Not only this, his trust in this stock has remained for a long time. He has not sold a single share of the company in the March quarter. The stock has given 380 per cent returns in the last 5 years, 73 per cent in 1 year and 20 per cent so far this year.

The stock will continue to rise

Brokerage House Motilal Oswal has given Buying advice for the stock keeping a target price of Rs 1430. The current price of the share is Rs 1234, which means there is a scope of 16 percent increase in it. The brokerage says that due to successful store performance, healthy store economy and aggressive growth offer, the company will see strong growth for the next 3 to 5 years. Revenue growth can be 37 percent during FY22-25. However, a 5 per cent to 12 per cent GST rate hike on apparel is a risk point. This may impact demand, especially in the price sensitive value retail segment. As raw material prices are rising, apparel retailers may hike prices, which may impact sales volumes.

What is the share of Radhakishan Damani?

As per the shareholding pattern for the March 2022 (Q4FY22) quarter of Trent Ltd available on Trendline and BSE website, Radhakishan Damani holds 1.5 per cent stake in the company. The company has 54,21,131 shares in his portfolio. In the December quarter too, he had only 1.5 per cent stake in the company. He has not sold a single share of the company for several quarters. The value of Damani’s holding in the company as on 19 April 2022 is Rs 663.3 crore.

Tata Group operates retail business through Trent Ltd. Operates stores in Trent in 5 different formats. Fashion retail includes Westside, Zudio (value fashion retail) and Zara JV (premium fashion retail). At the same time, through Star Bazaar JV, it operates hypermarkets in the food, grocery and daily need segments. Whereas, the Landmark Store is the company’s family entertainment format.

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