Rakesh Jhunjhunwala Stocks: Rakesh Jhunjhunwala-backed Titan’s stock is expected to rise as much as 42 percent and several brokerages have reported a rise in the stock in their report. Optimism is behind the company’s strong business outlook and departmental growth.
Billionaire investor Jhunjhunwala, also known as the Big Bull of the Indian stock market, owns 44,850,970 equity shares, which translates into about 5.1 percent of Titan’s shares according to the company’s latest shareholding pattern on the BSE.
Titan remains a key concept in the consumer sector, with a 6 percent jewelry market share. It is expected to be a key beneficiary of the segment, which is still being transformed from an unorganized to organized sector. HSBC Global Research says it is gaining market share driven by its consumer confidence, brand, and price, among other factors.
The company’s iCare business has also turned around and is aiming for aggressive growth, HSBC added, adding that Titan’s valuation has recently been revised from its peak, which has made the risk-reward favorable. It has maintained a buy rating with a target price of Rs 3,000. (42 percent reversed).
Domestic brokerage Prabhudas Lilladher, believes that the target of Rs 100 billion for watches and wearables in the next 5 years looks quite aggressive as the split has increased CAGR by 5 per cent in FY17-22. However, it indicates a 20 per cent sales CAGR in the jewelery segment.
Prabhudas Liladhar believes that new businesses like international jewelery, tanira and women’s bags offer long-term growth prospects in FY27 with Rs25bn / Rs10bn / Rs10bn which will make Titan a more widespread drama for lifestyle retailers.
The brokerage remained positive at approximately 25.3% PAT CAGR FY22-24 and on the basis of structural story, while maintaining a buy rating with a target price of Rs 2,701 per share, indicating a 28 per cent rise in share price from Monday’s closing price to 2111 per share.
ICICI Direct Research says, “Titan is an exceptional performer in terms of prudence, with stock prices rising at a CAGR of about 36% over the past five years. The company has consistently demonstrated its ability to gain market share in a difficult situation due to its strong balance sheet. ”
The brokerage has remained positive on the stock as high growth visibility justifies the premium valuation and aims at Rs 2,725 per share while maintaining a BUY position at the counter, indicating a 29 per cent rise in the stock.
Shares of Titan Company rose 3 per cent to close at Rs 2,176 on the BSE on Tuesday, compared to a rise of more than 2.5 per cent in the S&P BSE Sensex.