Sharekhan Gives A 'Buy' Rating To This Tata Group Stock, Skyrockets By 223.85% in 3-Years

A leading brokerage firm, Sharekhan has suggested investors buy shares of Titan Company Limited, which has skyrocketed by nearly 223.85 per cent in the last three years. The current market price of this large-cap Tata group's stock is Rs 2,750.45 per share.

The brokerage firm feels that the company's Q4FY2023 performance was broadly in line with the expectation. Titan's consolidated revenues (excluding bullion sales) grew by 27 per cent year on year (yoy) and profit after tax has grown by 30 per cent y-o-y. However, the earnings before interest, tax, depreciation, and amortization (EBITDA) margins stood at 10.5% was below expectations.

As per the research report of Sharekhan, the management mentioned that high gold prices led to softening of demand in March and early April. Sales picked up before the festive season. Akshay Tritiya boded well for the company. May is also witnessing good traction due to the wedding season. jewelry demand to be good during the festive and wedding season and hence expects double-digit revenue growth. EBIT margins to remain in the range of 12-13 per cent. The wearables segment (~20 per cent of revenues) revenue grew by 170 per cent under the watches business in Q4

Sharekhan believes the company is aiming to generate a revenue compounded annual growth rate (CAGR) of over 20 per cent during FY2022-FY2027 on the back of its ambitious growth plan in the medium term.

The brokerage also feels that along with consistent margin improvement Titan will help cash flows to improve robustly in the coming years. A strong growth outlook, industry tailwinds in the medium term, and a strong balance sheet make it the best play in the discretionary space.

Currently, the stock of Titan is trading at 60.3x and 49.7x in its FY2024E and FY2025E earnings. Hence the brokerage firm maintains its 'Buy' recommendation on the stock with an unchanged price target of Rs 2,950 per share.

About Titan Company Limited

Titan Company Limited is a large cap firm, part of the Tata group, incorporated in the year 1984 mainly manufacturing fashion accessories such as jewelry, watches, and eyewear. Titan is the fifth largest company that has integrated its brand as a watch manufacturer in the world. Its current market capitalisation is Rs 2,44,181.14 crore.

Share price movement of Titan Company Limited
The share price of Titan Company limited closed marginally upward by 0.57per cent over the previous days closing. In the last one year, the share price has rallied by 26.02 per cent while, in three years the price has skyrocketed by 223.85 per cent. Its 52-week high is at Rs 2,790 per share and the 52-week low is at Rs 1,827.15 per share.

Disclaimer:
The stocks have been picked from the brokerage report of Sharekhan, Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.