A Tata Group stock has outperformed the Sensex for a decade, recording an incredible 1,154% surge in just four years. Investors looking to invest in stocks have paid close attention to this impressive performer. In 2024 alone, the stock zoomed by 160%, significantly outpacing the Sensex's 18% rally.
One of the key contributors to this rise is Tata Group-owned Trent, a retail giant that has grown from strength to strength, making it a top choice for those keen to invest in stocks.
Trent's record-breaking performance
On Thursday, Trent shares hit a new all-time high of ₹7,939.90, following a 4% rally on the National Stock Exchange (NSE). This surge came after global brokerage firm Citi initiated coverage on the stock with a 'Buy' rating and a target price of ₹9,250, highlighting the stock's robust growth outlook. Over the past decade, Trent has consistently outperformed the Sensex, making it a top performer in the Indian retail space. Investors who invest in stocks have found Trent's growth trajectory attractive due to its consistent returns and strong fundamentals.
The stock gained momentum after the NSE announced that Trent and state-owned Bharat Electronics (BEL) would replace Divi's Laboratories and LTI Mindtree in the Nifty 50 index. This strong performance has made it a go-to stock for those looking to invest in stocks with a high growth potential.
Long-term growth
Trent's transformation from a single-format brand (Westside) to a multi-format and multi-category retail player has led to a higher compound annual growth rate (CAGR) of 36% between FY19 and FY24. The company's revenue growth during this period has surpassed many of its consumer discretionary and retail peers in India. This transformation has played a significant role in the stock's long-term growth and made it a preferred choice for investors seeking to invest in stocks.
Trent's expansion strategy, which includes the rapid opening of new stores across India, has been a key growth driver. It currently operates 228 Westside stores and 559 Zudio stores across 178 cities. This extensive network has allowed the company to capture a larger market share, benefiting from increased footfalls and strong performance across various brands, concepts, categories, and channels. Trent's ability to sustain its growth, even in a competitive market environment, is why investors who want to invest in stocks consider it a reliable option.
Key takeaways
Trent's ability to consistently beat the Sensex for a decade and deliver a 1,154% return over the last four years makes it a standout performer in the Indian stock market. With its strategic expansion, strong financial performance, and inclusion in the Nifty 50 index, Trent remains well-positioned for future success.
For investors looking to invest in stocks, Trent offers a compelling opportunity to benefit from long-term growth and stability. Its strong fundamentals, impressive financial results, and ongoing expansion plans make it a stock to watch in the coming years, especially as India's retail industry continues to evolve.
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