Tata-Backed Multibagger Apparel Stock Hits Fresh 52-week High: Standalone Profit Before Tax Zoomed 133 per cent YoY, 6 New Stores Added
The company has given multibagger returns of 246.70 per cent in a year.
Tata-backed Trent Ltd’s stock price soared more than 11 per cent in a day as it released its Quarterly Results for the quarter ending June 30, 2024.
Standalone Financial Performance
For Q1FY25, Trent reported standalone revenues of Rs 4228 crore, reflecting a 56 per cent increase compared to Rs 2704 crore in Q1FY24. The profit before tax (PBT) for the quarter was Rs 450 crore, up 133 per cent from Rs 193 crore in the same quarter of the previous year. Over a longer period, the compound annual growth rate (CAGR) for revenues and PBT from Q1FY20 is 39 per cent.
The company’s operating EBIT margin for Q1FY25 was 10.6 per cent, compared to 7.8 per cent in Q1FY24. Trent continued its expansion, now operating 228 Westside stores, 559 Zudio stores, and 36 other lifestyle concept stores. During the quarter, Trent opened 6 new Westside stores and 16 new Zudio stores across 12 cities.
The company reported that its fashion concepts achieved double-digit like-for-like (LFL) growth. The Westside loyalty program, WestStyleClub, showed strong outcomes. Emerging categories such as beauty & personal care, innerwear, and footwear now contribute to over 20 per cent of standalone revenues. Additionally, Westside.com and its presence on the Tata Neu platform grew by over 30 per cent and now contribute more than 5 per cent to Westside’s revenues.
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Consolidated Financial Performance
On a consolidated basis, Trent’s revenues for Q1FY25 were Rs 4354 crore, a 55 per cent increase from Rs 2808 crore in Q1FY24. The consolidated PBT was Rs 501 crore, up 136 per cent from Rs 212 crore in the same quarter of the previous year. The CAGR for consolidated revenues and PBT over Q1FY20 is 38 per cent and 49 per cent, respectively.
The consolidated results do not include revenues from the Trent Hypermarket business but include the proportionate share of its profitability accounted for using the equity method. The Star business, which comprises 72 stores, including 6 newly added stores during the quarter, reported a 29 per cent growth in operating revenues for Q1FY25 and a like-for-like growth of over 20 per cent. This business now derives over 70 per cent of its revenues from its own brands, staples, fresh items, and general merchandise. The performance of the Star business indicates a scalable and differentiated model contributing to Trent’s overall growth.
Trent Ltd has a market capitalization of Rs 2,23,187 crore. The current trading price is Rs 6,277, with a 52-week high of Rs 6,375 and a 52-week low of Rs 1,858. The company has given multibagger returns of 246.70 per cent in a year. The company has been maintaining a healthy dividend payout of 27.4 per cent.
Trent Ltd is engaged in retailing of apparels, footwear, accessories, toys, games, food, grocery & non food products through various of its retail formats/ concepts.
Investors must keep this Large-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.