Trent’s fifth Tata Group company to touch Rs 1 trillion m-cap

Mumbai: The market value of retail fashion chain Trent touched ₹1 trillion (lakh crore) on Friday, making it the fifth company from the Tata Group to achieve this milestone. Trent shares surged to an all-time high of ₹2,837.40 on Friday.

The total market value of all listed Tata Group companies is over ₹25 lakh crore. Software major Tata Consultancy Services, at nearly ₹13 lakh crore, commands more than half of the Tata Group’s total market capitalisation. This is followed by Titan, Tata Motors and Tata Steel, whose market values range between ₹1.6 lakh crore and ₹3.1 lakh crore.

Trent’s entry into the trillion-rupee club comes in the wake of its stock nearly doubling over a 52-week period, the highest growth among stocks of Tata group companies in the past year. The company, which houses retail chains Westside and Zudio, has gained investor confidence backed by its robust earnings and growth plans.

“The Tatas have managed to create value for shareholders in the retailing space, which is significant,” said Nilesh Shah, MD at Kotak Mahindra Mutual Fund. “It is a call on Tata’s growth and governance.”

A significant part of the wealth he company has created for its investors has come in the last three years, with the stock having gained nearly 300%. The stock has surged 108% so far in 2023. It is currently valued at 70-80 times one-year forward earnings, but experts believe it is justified given that the company is seen sustaining its high revenue growth trajectory.

“What we have after N Chandrasekaran) took over is that focus on free cash flows, return on capital, profitability and strengthening the balance sheet have been pillars, and we have the benefit of this come through at all Tata companies,” said Niket Shah, fund manager at Motilal Oswal AMC.

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