Titan can gain Rs 400 per share from current levels; Macquarie maintains Outperform rating post Q2 results

Titan Company shares have a potential upside of over Rs 400 per share from the current levels and could earn investors up to 16 per cent as per the estimates by brokerage firm Macquarie. The brokerage maintains an ‘Outperform’ rating and has put a target of Rs 3200 on the stock.   

Titan was trading at Rs 2736.40, down by 1.15 per cent as the stock is currently in the overbought territory and some profit booking was seen on the intraday basis on Monday.    

However, the prospects for this stock remain strong from the technical and fundamental standpoints.  

Titan Company Q2 Result

Strong margins across segments in 2Q along with 17–19 per cent sales growth in festive period post the September quarter paints a bullish outlook for December quarter, the brokerage firm noted. It has raised FY23E/FY24E/FY25E EPS 3 per cent each to factor in 2Q beat and strong festive demand. 

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The company on Saturday reported a 3 per cent Year-on-Year (YoY) jump in its Q2FY23 net profit at Rs 831 crore versus Rs 785 crore it reported in September quarter of FY22. Sequentially the Profit After Tax (PAT) was up 5.9 per cent. Net sales for the September quarter stood at Rs 9163 crore versus Rs 7493 crore during the same period, a year ago. It was up 22.3 per cent YoY.  
 Gross Profit Margin was at 27.6 per cent for the reporting quarter versus 25.5 per cent QoQ and 25 YoY. EBIDTA was at Rs 1247 crore against Rs 968 crore in Q2FY22, up 28.8 per cent YoY.

Another brokerage, Goldman Sachs maintains a Buy with a price target of Rs 3175 citing a strong quarter for the company on all fronts.  

The stock is also placed well on the technical charts with the counter trading above all moving averages, analyst Nilesh Jain opined. This is a buy on decline counter with fresh investments made at levels between Rs 2650 and Rs 2700. Jain, who is Assistant Vice President - Lead Derivative and Technical Research at Centrum Broking said that the stock was trading in an overbought territory. An upside of Rs 2800 is estimated from the very short-term perspective, he further said.  

Also Read: SBI share price jumps 4% on JP Morgan, Goldman Sachs upgrades, strong September quarter results

Meanwhile, Jefferies maintains a Hold on Titan with a revised target of Rs 2550 from Rs 2300.

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