Titan: Titan gets back its glitter, m-cap soars to Rs 2 lakh crore

Mumbai: Watches-to-jewellery maker Company’s market value crossed Rs 2 lakh crore on Thursday driven by the near 11% run-up in the stock after the company reported a strong recovery in demand in the September quarter. The company is the second in the Tata Group after Tata Consultancy Services () to cross this milestone.

The current market value of TCS stands at Rs 14.4 lakh crore

The stock ended up 10.7% at Rs 2,376.20 after touching an all-time high of Rs 2,383.35 during the day.

Brokerages remain bullish on the company’s prospects, with some such as JP Morgan and Credit Suisse raising target prices on the stock.

“While we anticipated Titan to report strong revenue growth, this is significantly ahead of our and street expectations driving around 6% EPS (earnings per share) upgrade over FY22-23. Watch revenue was also better than expected and eyewear was in-line,” said JP Morgan in a note, raising the target price to Rs 2,320 from Rs 2,000. “…we expect near term stock outperformance going into the festive season,” said JP Morgan.

titan

The stock has gained 52% since January and 516% in the past five years, making it among the best performing stock bets on India’s consumer story.

Credit Suisse has increased earnings estimates by 5-8% and target price to Rs 2,150 from Rs 2,000. The firm said it is likely that some of the lost demand from the first quarter was postponed to the second quarter which could partly explain the strong growth.

“Titan remains the best-run organised jewellery player in India and is rapidly gaining share from the unorganised market,” said Credit Suisse, while maintaining a neutral rating.

The jewellery business grew 78% and wearables segment saw 73% growth in July-September.

JP Morgan and UBS have a neutral rating on the stock.

Macquarie, which has an outperform rating on the stock, has raised the target price to Rs 2,650 from Rs 2,000. “We believe Titan, one of our consumer top picks, is better placed than peers to benefit from this clear uptick in demand momentum,” said Macquarie.