8 Tata group shares to deliver over 50% return in 2023

Shares of Tata Motors Ltd, Tata Power Company Ltd, Trent Ltd, Tata Investment Corporation Ltd and Automobile Corporation of Goa Ltd are among eight Tata group stocks, which delivered over 50 per cent returns in 2023 so far. A total of 22 group stocks managed to beat Sensex’s 18.22 per cent return during the period. Shares of Benares Hotels Ltd climbed 229 per cent for the year. The stock closed at Rs 8,888 on Thursday against Rs 2,690 apiece on December 30, 2022. Artson Engineering Ltd saw its shares rallying 132.14 per cent to Rs 179.10 from Rs 77.15 on December 30, 2022. Shares of Trent Ltd climbed 125 per cent to Rs 3,023.50 from Rs 1,350.65 level. Motilal Oswal Securities said Trent’s industryleading revenue growth recently was driven by healthy same store sale growth (SSSG) and productivity, robust footprint additions, and a healthy scale-up opportunity in Zudio offers a huge runway for growth over the next three to five years. “The company’s grocery segment, Star, with a presence of merely 65 stores and annualized revenue of Rs 1,810 crore (FY23) presents a huge opportunity to support growth. Its own brand strategy and curated range are seeing strong customer reception. We assign 37 times EV/Ebitda to the standalone business, 2 times EV/sales to Star Bazaar, and 15 times EV/Ebitda to Zara on September 2025, and arrive at a target of Rs 3,140,” Motilal Oswal said. Tata Investment Corporation Ltd shares jumped 101 per cent to Rs 4,250.80 from Rs 2,109.90. Tata Motors Ltd soared 91 per cent to Rs 754.20 level from Rs 388.10 level. Oriental Hotels Ltd jumped 66 per cent year-to-date while Tata Power Company Ltd. JM Financial this month said Tata Power is recalibrating its strategy by tapping high-margin group captive renewables (RE) opportunities, exiting low-value businesses and venturing into brownfield pumped hydro storage, and expanding transmission business beyond distribution. “This, coupled with the visible resolution of the Mundra issue, positions the company for accelerated growth. We forecast Revenue/Ebitda/profit CAGR of 15 per cent/23 per cent /32 per cent respectively over FY23-26E, supported by increasing asset base and improved margin profile. We upgrade the stock’s rating to BUY, setting an target of Rs 350,” the brokerage said. Automobile Corporation of Goa Ltd surged 56 per cent for the year. Tejas Networks Ltd, TRF Ltd, Titan Company Ltd, Tata Elxsi Ltd, Tata Coffee Ltd, The Indian Hotels Company Ltd and Tata Communications Ltd were some of the other group stocks gaining 35-50 per cent this calendar.

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