This Rekha Jhunjhunwala-backed Tata group company stock hits new 52-week high – what should you do?
Titan share price: Titan posted better-than-expected revenue growth, powered by strong demand trends in the jewellery and watch segment In the January-March quarter of the last fiscal year.
Titan share price: Shares of Titan Company, a Tata Group-backed jewellery and accessories firm, touched a new 52-week high of Rs 2,840.60 apiece, after gaining over a per cent on the BSE. This Rekha Jhunjhunwala-owned stock has rallied nearly five per cent in the last one week on a stable business outlook.
Titan Company, a market leader in domestic branded jewellery with brands like Tanishq, Zoya, Mia, and Caratlane and wristwatch segments like Fastrack and Sonata, is a joint venture between the Tata Group and Tamil Nadu Industrial Development Corporation Limited (TIDCO).
Titan Q4 Results
In the January-March quarter of the last fiscal year, Titan posted better-than-expected revenue growth, powered by strong demand trends in the jewellery and watch segments.
On a consolidated basis, Titan’s revenue grew 33 per cent year-on-year (YoY) to Rs 10,360 crore, while profit after tax grew 39 per cent YoY to Rs 736.0 crore for the quarter ended in March 2023.
The company’s consolidated EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased 37 per cent YoY to Rs 1,089 crore and the margin improved 30 basis points YoY to 10.5 per cent during the quarter under review.
Rekha Jhunjhunwala's favourite stock
Rekha Jhunjhunwala, a renowned stock market investor, has 4,69,45,970 equity shares or a 5.3 per cent stake in Titan, as per the March 2023 shareholding pattern of the company available on the BSE.
Rekha Jhunjhunwala, the wife of late stock market veteran Rakesh Jhunjhunwala, publicly holds 29 stocks with a net worth of over Rs 30,963.2 crore as of May 30, 2023, according to the stock analysis website trendlyne.com.
What should investors do?
Titan Company has outperformed discretionary peers across time periods, and the company’s outlook remains robust, domestic brokerage firm Motilal Oswal said, adding that the company has ample opportunities for growth given its market share in the jewellery segment.
The brokerage maintained a 'buy' rating on the stock with a target of Rs 3,080 per share as the firm’s medium-to-long-term earnings growth potential is unparalleled.
Another brokerage firm, Phillip Capital, said, "We continue to remain cautiously optimistic with a ‘buy’ rating on Titan shares with a target price of Rs 3,000 per share."
This is mainly due to increased competitive intensity on the gold rate front, diamond inventory gains no longer being available over FY24–25, and higher volatility in the gold price, which will eventually lead to a deferment of demand, the brokerage noted.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
04:00 PM IST