Trent posts nearly three-fold rise in consolidated net profit for Q2; stock hits all-time high

Trent Ltd shares jumped in the morning deals on Wednesday, continuing their rally for the fourth straight session, and hit an all-time high on the BSE of Rs 2,492 apiece. The stock rallied after the company reported a nearly three-fold increase in the consolidated net profit in its July–September quarter (Q2 FY24).

At around 10:31 a.m., shares of Trent Ltd. traded 2.32 per cent or Rs 56.3, higher at Rs 2484.5 apiece. The market capitalisation of the company at around the same time stood at Rs 88,290.64 crore.

On Tuesday, during market hours, Trent announced its Q2 results, which showed that its consolidated profit rose nearly three-fold to Rs 228.06 crore for the September quarter as against Rs 78.94 crore logged in the year-ago period.

Tata Group's firm's consolidated revenue from operations stood at Rs 2,982.42 crore as against Rs 1,952.74 crore registered in the corresponding quarter of the previous fiscal. The total expenses were higher at Rs 2,773.52 crore as compared to Rs 1,899.49 crore seen a year ago.

"Our lifestyle offerings across concepts, categories, and channels witnessed strong momentum in Q2 FY24 (September quarter) despite challenging market conditions. We continue to see growing relevance for our offerings, resilience in our business model choices, and attractiveness of our differentiated platform," Trent Ltd. Chairman Noel N. Tata said.

The chairman added that the company will expand and deepen its store presence with "the aim of being ever more proximate and convenient to customers, reinforcing our brand promise."

Global brokerage Jefferies has maintained a 'hold' rating on the stock and has raised the target to Rs 2,050 apiece from Rs 1,640.

ICICI Securities has downgraded the stock from 'buy' to 'add' for a target price of Rs 2,600 apiece. The brokerage has made a downward revision at the current valuation. 

Trent Ltd share price: Past performance 

In 2023 so far, shares of Trent Ltd have gained over 84 per cent a sharp rise against Nifty50's rise of over 6 per cent.

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