Names like Westside, Star, Landmark are almost commonplace, but the brand behind the brands is Trent Limited, which started its journey way back in 1952 as Lakme, as a business that dealt with the manufacturing, sale, and export of cosmetics, toiletries, and perfumery products. Almost seven decades later, Trent Limited, part of the Tata Group of Companies, has finally entered the list of 100 most valued companies in India this month. Market capitalization of the company has led to this great achievement, as the stock of the company hit an all time high of INR 1479 on the 17th of the month. This led to the company’s market cap going beyond INR 50,000 crore. As per Mint, till mid-August 2022, the stock has rallied over 39 percent.
Since 5 trading sessions before the record-high of the share price, there has been an increase of 11 percent in the values. Trent limited has reported a net profit of INR 115 crore in the first quarter of the current financial year, i.e., FY2023. Owing to the pandemic related disturbances, the company’s performance had been affected during the corresponding period in the previous financial year which had resulted in the company reporting a loss of INR 138 crore in the first quarter of FY2022. Some later weeks in the fourth quarter had also seen a slight decline in the company’s operating performance in FY 2022, owing to the temporary restrictions due to the third wave of COVID. The company has since then recovered from such disruptions and has shown a significant growth streak, with the revenue growing from INR 492 crore in Q1 FY 2022 to INR 1803 crores in Q1 of FY2023.
As per a report from Mint, ICICI Securities has a positive outlook on the growth of Trent, adding that since the company has shown resilience during challenging times and exemplary performance in the industry, further valuations of the company will continue to be in a premium position.