Brokerages stay bullish on Rakesh Jhunjhunwala-backed Titan post Q3; sees up to 30% upside

Most global brokerage firms have maintained their positive view on Titan Company Ltd where ace investor Rakesh Jhunjhunwala held over 5 per cent stake for the quarter ended December 2021.

The ace investor increased the share in Titan Company marginally on a QoQ basis in the December quarter. The holding value of the total stake is over Rs 11000 cr, data from Trendlyne showed.

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The most aggressive target price of Rs 3350 on Titan Company was put out by Macquarie post December quarter results. The global investment bank has an 'Overweight' rating.

Tata group's jewellery and watches maker Titan Company reported a 91 per cent jump in consolidated net profit at Rs 1,012 crore for the third quarter ended December 2021, driven by strong demand across its consumer businesses.

The company had posted a consolidated net profit of Rs 530 crore in the same period last fiscal, Titan said in a regulatory filing. 

Propelled by festive purchases in October and November, the jewellery business registered an income of Rs 8,563 crore with 37 per cent growth in the third quarter as compared to Rs 6,249 crore in the year-ago period, said a PTI report.

Watches and wearables business posted an income of Rs 708 crore, as against Rs 550 crore in Q3 FY21, up 29 per cent, it added.

We have collated a list of recommendations from various global brokerage firms according to a Zee Business TV report:

HSBC: Buy| Target Rs 3050

HSBC maintained its buy rating on Titan Company post December quarter results with a target price of Rs 3050 that translates into an upside of over 23 per cent from Rs 2479 recorded on 3 February.

Jefferies: Hold| Target Rs 2600  

Jefferies maintained its hold rating on Titan Company post December quarter results but raised the target price to Rs 2600 from Rs 2300 earlier that translates into an upside of nearly 5 per cent from Rs 2479 recorded on 3 February.

Morgan Stanley: Overweight| Target Rs 2720

Morgan Stanley maintained an overweight rating on Titan Company post December quarter results with a target price of Rs 2720 that translates into an upside of nearly 10 per cent from Rs 2479 recorded on 3 February.

The Q3 earnings beat Morgan Stanley's estimate and consensus by 16% and 13%. The December quarter performance was strong across all parameters, and the management sounded optimistic for the near term.

JP Morgan: Neutral| Target Rs 2800

JPMorgan maintained its neutral rating on Titan Company post December quarter results but raised the target price to Rs 2800 from Rs 2700 earlier translates into an upside of nearly 5 per cent from Rs 2479 recorded on 3 February.

Titan shares were trading at Rs 2466.40 on the BSE at 10:20 am and were down almost 0.4 per cent from the Thursday closing price.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)