Trent’s share price climbed to a high of Rs 8,318.25 in intraday trading on Wednesday, up 3 percent on the Bombay Stock Exchange. That’s two days of relentless progress after Trent said it would sell POME jewelry through some Westside stores. Trent surges, approaching a market cap of ₹3 trillion, driven by exceptional growth in its retail operations.
Shares of the TATA Group retail company have gained 13 percent over the last three trading days. So far in 2024, the stock price of Trent has skyrocketed by 172 percent from its opening price, while BSE Sensex gained nearly 14 percent during the same period.
This sharp spurt in the share price of Trent surges and has catapulted the company’s market capitalisation into the Rs 3 trillion territory. The company’s market capitalisation had as of today’s intraday dealings stood at Rs 2.96 trillion, which was just short by 1.5 percent of achieving this landmark.
Its Westside, Zudio, and Trent Hypermarket brands, competing under the Star banner in the food, grocery, and daily needs segments, are at the core of Trent’s customer offerings. It has 228 Westside stores and 559 Zudio locations across 178 cities.
In a regulatory filing today, Trent responded to a variety of news reports clarifying that it sells its Westside products under various brands. The existing Westside brand boasted a variety of fashion and lifestyle accessories and now boasts an added layer of POME jewelry in stores. This is part of a pilot initiative, as the company believes in its strategy for Westside.
As for Zudio Beauty, according to him, it already has a stronghold in the beauty and personal care space with offers available in existing Westside and Zudio stores. Further additions have also been made to the portfolio through selective Zudio beauty stores, although on a pilot basis. The company continues piloting new initiatives each time to improve its customer offerings.
According to Trent analysts, the company is expected to continue boasting a strong performance in later quarters. The drive of the company to expand and increase product diversity in stores will keep fueling future growth across every retail format.
Axis Securities praised the performance of Trent over recent quarters, especially against the backdrop of soft consumer demand. The brokerage firm said that sustained growth in sales indicated optimism and was due to the rapid store expansion of Trent and the continued refreshment of the product assortment, which was likely to drive footfalls in the future.
“Earnings improvement in all formats, reduced losses at Star Bazaar, and building scale at the Inditex joint venture are all positives for the company. Over the past few years, Trent has formulated a small format store format for Star Food, which, with competitive pricing and an emphasis on fresh produce and private labels, has marked encouraging preliminary results. The strength and commercial viability of this model stand out going forward, the brokerage firm added. With its impressive performance, Trent continues to surge as a key player in the market, solidifying its position with a potential trillion-dollar valuation.
