Tata Stock Hits All-Time High After Q4 As Several Brokerages Raise Target Price

Trent‘s share price was soaring on Tuesday morning as the company posted strong numbers for the March quarter. The Tata stock surged up over 7% to hit a new all-time high of ₹4,629.40.

What Happened: The Tata Group company witnessed a multifold increase in its consolidated net profit, reaching ₹712 crore. This surge compares to a net profit of ₹45 crore reported in the corresponding period last year. The company had a one-time gain ₹576 crore from it reassessing its lease liabilities and right-of-use assets

Additionally, revenue from operations experienced an uptick of 52% to ₹3,298 crore compared to ₹2,182 crore in the same quarter of the previous year. The company’s EBITDA also increased to ₹477 crore from ₹211 crore, with an EBITDA margin of 15%.

Analyst Reactions: Antique Broking upgraded the stock’s rating to “buy” from “hold” raising the price target to ₹4,876 from ₹3,771. The brokerage said that the company’s all-round outperformance warrants the rerating. The analysts expect strong growth driven by aggressive store expansion of Zudio.

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Nuvama maintained its “buy” rating for the stock raising the target price to ₹4,926 from ₹4,304. The brokerage said that the company reported another set of strong numbers and outperformed the industry. The analysts noted that the company’s gross margins improved on the back of lower raw material prices.

Kotak Securities maintained its “add” rating for the stock raising the target price to ₹4,600 from ₹3,800. The domestic brokerage firm said that the company’s gross margin of around 45.3% beat its estimates. Talking about the company’s grocery business, the analysts remarked that its turnaround journey continues.

Morgan Stanley maintained its “equalweight” rating for the stock with a target price of ₹3,675. The analysts said that the company’s Q4 numbers beat its estimates on revenue and margins. The brokerage also mentioned that the company’s grocery segment saw continued growth and customer traction.

HDFC Securities maintained its “sell” rating on the stock with a target price of ₹3,000. The brokerage in its latest research note said, “Trent continues to run circles around peers in terms of growth”. However, the analysts added that the stock at its current valuation is a little expensive.

Price Action: Trent’s share price was up 6.83% to trade at ₹4,608.95 as the markets opened for trading on Tuesday.

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