Trent: Should you buy the stock after Q2 results? Here's what brokerages say
Trent, the retail arm of Tata Group, hit a new all-time high of ₹2,503.8 apiece in Wednesday's trade. During the previous trading session, the shares rose sharply by 8.54% as investors reacted positively to the company's strong performance in Q2FY24. During market hours on Tuesday, the company released its Q2FY24 scorecard, reporting a robust performance across all its key formats.
It reported a standalone revenue growth of 59.37% YoY at ₹2,891 crore, driven by aggressive store additions in Zudio and 10% LFL growth in fashion concepts (Westside, Zudio, and other lifestyle stores). The company opened 6 Westside and 27 Zudio stores and closed four stores each in 2QFY24, taking the total store count to 222 and 411. Also Read: Offline sales dominate in India's retail industry: Report Trent Hypermarket, which operates in the competitive food, grocery, and daily needs segment under the Star banner, registered operating revenue growth of 30% in Q2FY24 as compared to the corresponding previous period.
Emerging categories such as beauty and personal care, innerwear, and footwear contributed to over 19% of standalone revenue in Q2FY24. Trent's bottomline reflected strong performance, with a standalone net profit of ₹290 crore in Q2FY24, signifying a remarkable 56% YoY increase. Also Read: Reliance Retail bags Sephora India rights: 5 key things to know about the global beauty giant Following the Q2 results, domestic brokerage firms maintained their 'buy' recommendations for the stock, with many of them revising their target prices upwards.
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