Shares of this large-cap Tata Group company are in focus after CLSA gave a positive outlook for the company after it announced robust Q2 results. In the past six months, the company’s stock has gained nearly 20 percent.
With a market capitalization of Rs 2.89 lakh crores, the stocks of Titan Company Limited, a Tata Group company, started their trading session on Monday at Rs 3,338 and currently trades at Rs 3,256, slipping around 0.50 percent compared to the previous close of Rs 3,272.55 apiece.
Digging into the financials recently announced by the company, the operating revenues, as well as net profits, showed decent movement with the former increasing from Rs 11,897 crores during Q1FY23-24 to Rs 12,529 crores during Q2FY23-24, and, the latter, during the same period, moving up from Rs 756 crores to Rs 915 crores representing a jump of around 21 percent.
Having a positive outlook for the company, CLSA, a capital markets and investment group company, upgraded the rating for Titan from ‘Outperform’ to ‘Buy’ and revised the target price from Rs 3,540 to Rs 3,948 indicating an upside of 21.25 percent as compared to the current stock price level.
Historically, the Tata Group entity has showcased consistent growth in profitability ratios in the past few financial years with the return on equity (RoE) increasing recently from 26.18 percent during FY21-22 to 30.97 percent during FY22-23, and, the return on capital employed (RoCE) increasing from 23.04 percent to 27.47 percent.
As per the shareholding data available for the September 2023 quarter, the company’s Promoters hold a 52.9 percent stake, and the Foreign Institutional Investors (FIIs), recently increasing their stake, currently hold a 19.05 percent stake in the company.
Titan Company Limited is an India-based company involved in the manufacturing and sale of watches, eyewear, jewellery, and other accessories and products. Generating a majority of its revenue from the ‘jewellery’ segment, the company sells its products under various brands such as Fastrack, Tanishq, Skinn, etc.
Written by Amit Madnani
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