Trent share price in focus today: Shares of Tata Group’s retail arm, Trent, rose 3% on June 23 to hit a five-month high of ₹6,078 apiece, outperforming a weak broader market as the stock was officially included in the BSE Sensex today, a move expected to trigger $330 million in passive inflows, about 5.8 times its average daily volume (ADV), according to Nuvama Alternative & Quantitative Research.
The Tata Group stock has been buzzing of late on Dalal Street, despite the Indian stock market being under pressure amid rising tensions in the Middle East, as the conflict between Iran and Israel deepens.
Optimism surrounding the stock was fueled by the company’s continued commitment to its long-term target of achieving 25% annual growth, with a focus on value fashion brand Zudio, expansion into micro-markets, and entry into new categories, the retailer told analysts at its investor day on June 18.
Trent aims to remain relevant in the fashion business by using Zudio as its primary growth engine, according to reports by multiple brokerages.
“Remaining relevant in the fashion business is the most important factor, and all decisions are centered around that. LFL, store count growth and TAM are all secondary. There is no first-mover advantage really. So many first movers have become obsolete. There is no point driving LFL via discounts OR driving price-led growth at the cost of volumes (and losing relevance) OR chasing TAM by adding more and more categories,” analysts at Nuvama Institutional Equities said in a report released on Thursday following Trent’s 18 June investor day meet.
