If you’re looking to invest in fundamentally sound companies, consider those favored by mutual funds. These firms are consistently attracting substantial investments from mutual funds, indicating their strong fundamentals. By investing in these companies, you can position yourself for impressive returns, even amid market fluctuations.
Currently, both the Indian stock markets and global markets are experiencing significant fluctuations. After a prolonged period of robust growth, experts predict that volatility will continue in the near future. Investors should focus on companies with solid fundamentals, as they are more likely to yield strong returns despite market turbulence.
Trent Limited
Trent Limited, part of India’s largest industrial conglomerate, the Tata Group, has consistently delivered impressive returns to its investors. The company has achieved over 100% profit growth year after year. Approximately 38% of its shares are held by foreign investors and mutual funds, which are now ramping up their investments in the company. This renewed interest suggests that Trent Limited has the potential for substantial returns in the near future. Over the past year, the company’s shares have surged by more than 250% due to significant profit growth.
- Market Cap: ₹2,60,174 Cr
- Current Price: ₹7,319
- High / Low: ₹7,388 / ₹1,945
- Stock P/E: 208
- Book Value: ₹114
- Dividend Yield: 0.04%
- ROCE: 23.8%
- ROE: 27.2%
- Face Value: ₹1.00
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Company Profit Growth
Trent Limited has experienced remarkable profit growth, with the net profit for the financial year 2023 reaching ₹310 crore—an increase of over 400% compared to the previous year. In financial year 2024, the company’s net profit soared to ₹1,353 crore, driving a sustained surge in its stock price. This trend suggests that investors could see impressive returns in the future.
Continuous Investments by Mutual Funds
Despite mutual funds and foreign investors holding a 38% stake in the company, investment activity continues to rise. According to shareholding patterns, Indian mutual funds increased their ownership from approximately 25% in financial year 2023 to 27.87% over the past year, while mutual funds overall account for 13.9% of the shares.
Exceptional Returns Over Five Years
Thanks to its fundamentally strong growth and increasing investment from mutual funds, Trent Limited has significantly enriched its investors over the last five years. During this period, the company’s shares have skyrocketed by more than 1500%. For instance, an investment of just ₹10,000 could have generated profits of up to ₹1,50,000, indicating the potential for strong returns even in fluctuating market conditions.
Key Metrics: Profit Growth and Shareholding
| Returns | Shareholding | Net Profit/Year (in ₹ Cr) |
| 1 Month Returns: 13% | Promoter: 37.01% | 2021: ₹-109 |
| 1 Year Returns: 260% | Public: 13.18% | 2022: ₹29:00 |
| 3 Year Returns: 700% | DII: 21.95% | 2023: ₹310 |
| 5 Year Returns: 1500% | FII: 27.87% | 2024: ₹1353 |
Disclaimer: Investing in the stock market involves risks. The information provided here is intended for educational purposes only. Before making any investment decisions, we recommend consulting with a certified financial advisor. We are not responsible for any financial losses incurred. Thank you!
