Trent zooms 172% so far in 2024 on healthy growth; m-cap nears Rs 3 trn

Trent's market cap touched Rs 2.96 trillion in the intraday deals, and is 1.5 per cent away from Rs 3-trillion milestone

Trent share price hit a new high of Rs 8,318.25 today, gaining 3 per cent on the BSE Wednesday's intraday trade. Trent shares extended their past two days' rally, which was triggered after the company announced the launch of the POME jewellery in select Westside stores.

In the past three trading days, the stock of the Tata Group retail company has rallied 13 per cent. Thus far in the calendar year 2024, the stock price of Trent has zoomed 172 per cent. In comparison, the BSE Sensex has surged nearly 14 per cent during the period.

A sharp surge in Trent's share price has pushed the market capitalisation (market cap) of the company towards Rs 3-trillion mark. Trent's market-cap touched Rs 2.96 trillion in the intraday deals today, and is 1.5 per cent away from the psychological milestone.

Trent's primary customer propositions include Westside, Zudio, and Trent Hypermarket, which operates in the competitive food, grocery, and daily needs segment under the Star banner.  The company operates 228 Westside stores and 559 Zudio stores across 178 cities.

In an exchange filing today, Trent clarified on various news reports and said that the company presents its offerings in Westside through multiple brands. Besides, Westside already has a presence in the fashion and lifestyle accessories category. The said portfolio is extended by launch of the POME jewellery in select stores. The same is also a pilot, consistent with the company's articulated strategy for Westside, Trent said. READ FILING HERE

As regards to Zudio Beauty, Trent said the company already has presence in the beauty and personal care category through related offerings in existing Westside and Zudio stores. The said portfolio is extended through select Zudio beauty stores on a pilot basis.

The company keeps evaluating various opportunities for enhancing customer offerings and pilots the same on a continuous basis.

Meanwhile, analysts anticipate Trent to continue strong performance in the coming quarters. The company's focus on store expansion and product assortment will likely drive future growth across all store formats.

Axis Securities believes Trent's outstanding performance over the past several quarters, despite weak consumer demand, is commendable. The brokerage firm, in June quarter result update, said that it expects strong sales growth to continue in the coming quarters, driven by Trent's focus on rapid store expansion and ongoing assortment renewal, which should result in increased overall footfall.

"Additionally, the improvement in the earnings profile across all formats, the reduction in losses at Star Bazaar, and the enhanced traction at the Inditex JV are positive indicators for the company. In recent years, Trent has adopted a small-format store model for Star Food. This approach, coupled with sharp pricing and a focus on fresh produce and private labels, has yielded positive results. The resilience and commercial viability of this model are evident in its performance," the brokerage firm had said.