Gold Stock To Buy: Tata Group-backed gems and jewelry company Titan is performing better than any Tata stock. Titan's share price has gained throughout YTD, thanks to gold prices peaking in India. Noteworthy, Titan stock has performed on par with gains of 24K gold in 10 grams in a month. Both have given 10% returns each. Since gold is expensive, is Titan, which trades below Rs 3,400 levels, an attractive bet?
Titan Share Price:
After market hours of April 25th, Titan Company shares dipped by nearly 1% to end at Rs 3362.15 apiece on BSE. Titan is the largest gems and jewelry company, with a market cap of Rs 298,487.02 crore.
The stock's 52-week high and low is at Rs 3,866.15 apiece and Rs 2,947.55 apiece, respectively. Furthermore, it has a strong return on equity of 21.71%.
On a week-on-week basis, Titan stock zoomed nearly 2%. In half-yearly performance, the stock rallied 2.30%. What is noteworthy is that Titan is also in green in its YTD performance with 3.32% surge. From March 26 to April 26, Titan share price has skyrocketed by nearly 9.97%.
Gold prices have corrected sharply for three consecutive sessions. On Saturday, the 24K gold price is at Rs 92,840 per 10 grams in India, while the 22K gold price stood at Rs 90,020 per 10 grams. Despite the latest decline, gold prices in India are at a peak.
A month ago, 24K gold price stood at Rs 89,400 per 10 grams on March 26. From this level, the gold price has jumped by 9.85%.
Hence, both Titan and 24K gold price offered similar gains in 1 month.
Titan Corporate Actions:
Titan Company has a strong record of bonuses, splits and dividend rewards.
Bonus Issue: The company has issued only 1 bonus and that was in the ratio of 1:1. Its ex-date was on June 24, 2011.
Stock Splits: The stock has split only once. With effect from June 24, Titan stock has split in the ratio of 1:10, where its face value of Rs 10 each was trimmed to Re 1.
Dividends: Since August 2003, Titan has rewarded 22 dividends, as per Trendlyne. The company paid about Rs 11 dividends per share in past 12 months. Currently, its dividend yield is at 0.33%.
Should You Buy Titan Share?
As per Trendlyne data, the consensus recommendation from 34 analysts for Titan Company Ltd. is BUY. EPS is expected to grow by 0.7% in FY25. The average 1-year target price is at Rs 3689.71 apiece, which signals at nearly 10% potential upside.
Earlier this month, analysts at JM Financial said on Titan's Q4, "Overall standalone sales are expected to grow ~13% YoY; 25% growth adjusted of bullion sales in base quarter led by 25% YoY growth in jewellery business (ex-bullion). We expect a jewelry EBIT margin of 10.8% (ex-bullion sales; flat YoY). Overall, we estimate standalone EBITDA/ PAT growth of 22/ 11% YoY, 9/10% ahead of our initial estimate." The brokerage recommended HOLD.
About Titan Company:
Titan has come a long way since 1984. At present, the company has over 8,000 employees and about 38,000 in the overall Titan ecosystem, 16 brands and over 2,000 retail stores. The gems and jewellery giant has built a leadership position in the Jewellery, Watches and EyeCare categories.
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