Rekha Jhunjhunwala Portfolio: Analysts see strong growth outlook, up to Rs 600 upside in this scrip — Check target price

Rekha Jhunjhunwala Portfolio: Shares of big-ticket investor Rekha Jhunjhunwala-backed Tata Group's jewellery and accessories firm – Titan Company — may surge up to 25 per cent or by Rs 600 apiece on a strong growth outlook in jewellery segment and sustained demand trends, several brokerage firms said in their note.

The stock closed flat on Tuesday with a negative bias at Rs 2450 per share on the BSE, as compared to a 0.37 per cent fall in the S&P BSE Sensex.

Titan on February 2, 2023, reported a nearly 10 per cent year-on-year fall in consolidated net profit to Rs 913 crore for the quarter ended December 2022 owing to higher expenses.

The company’s total income increased almost 16 per cent to Rs 11,698 crore compared with the corresponding period a year ago, as per a regulatory filing. While its India business expanded by nine per cent driven by healthy consumer demand during the festive season in the December quarter.

Titan has been an exceptional performer in the discretionary space with stock price appreciating at around 30 per cent compound annual growth rate in the last five years, analysts at ICICI Securities said.

The brokerage continues to remain structurally positive on the stock as high growth visibility justifies premium valuations and maintains a ‘Buy’ with a target price of Rs 3030 per share, implying a nearly 24 per cent upside from Tuesday’s closing price.

Similarly, Motilal Oswal highlights that Titan has outperformed discretionary peers across time and the outlook remains robust with a strong runway for growth, given its market share in jewellery segment. It also maintains a ‘Buy’ rating with a target price of Rs 3070 apiece, implying a 25 per cent upside.

Analysts at Kotak Institutional Equities see moderate growth and margin, forecasting a slowdown in discretionary demand, rising gold prices, and higher competitive pressure. The brokerage maintains an ‘Add’ rating on the stock with a target price of Rs 2,700 apiece, implying a 10 per cent upside.

Titan's attractiveness comes from low market share in a large addressable market, wide gap versus competitors, and steady investments and progress on multiple fronts which would enable market share gains for a foreseeable future, Kotak Institutional added.

Ace investor Rekha Jhunjhunwala has 4,58,95,970 equity shares or 5.2 per cent stakes in Titan Company, as per the latest shareholding pattern of the company available on the BSE. She publicly holds 29 stocks with a net worth of over Rs 25,667.4 crore as of February 7, as per trendlyne.com.