Rakesh Jhunjhunwala stock: Titan becomes 2nd Tata company to cross $2 trn m-cap; stock hits new high, up 9% - check target price

This Rakesh Jhunjhunwala’s most favourite stock — Titan Company — has become the second Tata Group company to breach $2 trillion market capitalisation on Thursday. At 10:00 am, Titan hit $2.05 trillion market-cap mark. Tata Consultancy Services is the other Tata company to hit this milestone.

The shares of Titan touched a new lifetime high of Rs 2347 per share after surging by over 9 per cent on the BSE intraday trade today, on the back of a strong quarterly update in the second quarter of the financial year 2021-22 (Q2 FY22), released by the company through a filing on Wednesday.

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Titan in its filing said, “The company witnessed strong recovery in demand after the second wave across its consumer businesses with sales moving swiftly above or close to pre-pandemic levels in most of the divisions. Most stores are now fully operational barring few in select towns having localized restrictions, with overall store operation days exceeding 90% for the quarter.”

The company said, jewellery segment, which contributes a larger portion of its turnover, has reported 78 per cent revenue growth, while in watches and wearables, its revenue was up 73 per cent in Q2 FY22 compared to Q2 FY21. 

Similarly, Titan's Q2 FY22 eyewear revenue was up 74 per cent and added 24 new stores in the quarter. While its other business segment, which includes - Taneira, Fragrances and Accessories, reported 121 per growth during the quarter, the company said in filing to exchanges.

Titan is one of the most favourite and heavily invested stocks of the Rakesh Jhunjhunwala, who is also termed as the Big Bull of the stock market. He along with his wife Rekha hold 42,650,970 shares, aggregating to a 4.8 per cent stake in the company, as per the shareholding pattern on the BSE shows.

Maintaining a Buy stance, a domestic brokerage firm Emkay increases FY23/FY24 EPS estimates by 8-12 per cent factoring in the strong growth momentum in Titan. It raises September 2022 target price to Rs 2,530 apiece, valuing the stock at 65x Sep'23E EPS.

The brokerage firm says, “Full unlocking and the upcoming festive/wedding season are likely to further boost revenues in the coming quarters and may offer more upsides, in our view.”

Angel One Ltd AVP - Mid Caps Amarjeet Maurya says, “Titan is targeting to gain market share in the Jewellery segment due to strong focus on wedding segment, huge scope for store expansion (40-50 stores every year), and gold harvest & gold exchange schemes.”

Further, the shift from unorganized (currently 70 per cent) to organized (currently 30 per cent) in the Jewellery segment will benefit branded players like Titan due to strong brand positioning and superior quality, Maurya adds