The shares of Titan Company, a tata group stock, opened at Rs 2,699 on Thursday and climbed by 2 per cent to reach a high of Rs 2,757 in the early hours. The stock is trading near its 52-week high of Rs 2,768 which it reached in September this year.
In the past four months, the stock has scaled by approximately 33 per cent. This can be mainly attributed to the ongoing festive season in India.
Titan has a dominant presence in industries that includes Jewellery, Watches & Wearables, EyeCare and Fragrances & Fashion Accessories.
In Q2FY23, the company reported a total revenue of Rs 9,443 crores which is an increase of 173 per cent from the same period a year earlier when they earned Rs 3,473 crores.
The revenue from their Watches & Wearables saw a 20% growth Year on Year (YoY) followed by the Jewellery and EyeCare segment which saw a rise of 18% and 7% respectively. The revenue from the emerging segment of the company, Fragrances & Fashion Accessories, saw a growth of 34% YoY.
The net profit in the period grew multifold to Rs 790 crores up from Rs 18 crores in Q2FY22.
Motilal Oswal is bullish on the stock and has recommended a ‘Buy’ rating with a target price of Rs 3,135 which represents an upside of 17% from the current levels.
“Titan company has been the standout performer among all of its Consumer peers, in terms of revenue, earnings, as well as stock price performance over the past five years. For a company of its size, sales of INR366b (USD4.6b) in FY23E and the ~20% revenue and earnings CAGR is extremely impressive,” the brokerage highlighted in the report.
The company has a market capitalization of Rs 2,39,347 crores and a dividend yield of 0.28%. It is also undervalued as the TTM PE of the company is 81.47 as against its market average of 98.66.
Written by Anoushka Roy
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
