Shares of Titan Company Ltd rose 2% to a record high amid a rally in the broader market today. The Titan Company stock hit a record high of Rs 3030 against the close of Rs 2976.40 on BSE. A total of 0.25 lakh shares changed hands amounting to a turnover of Rs 7.58 crore. The stock was the top gainer on Sensex. Market cap of the firm rose to Rs 2.68 lakh crore. The share has climbed 20.13 per cent in a year but gained 4.44% since the beginning of this year. In terms of technicals, the relative strength index (RSI) of the stock stands at 69.8, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 0.8, indicating low volatility in a year. Titan Company stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock hit a 52 week low of Rs 1827.15 on July 1, 2022. It has risen 66% from 52-week low.
In the last quarter, the Tata Group firm reported a 49.5 percent year-on-year (YoY) jump in standalone net profit at Rs 734 crore against a net profit of Rs 491 crore. Total revenue climbed 49.5% to Rs 9,704 crore against Rs 7,276 crore in the corresponding period of the preceding fiscal.
The board recommended a dividend of Rs 10 per equity share of Re 1 each of the company.
Kaustubh Pawaskar, DVP Fundamental Research at Sharekhan said, "Despite near-term headwinds from high inflation, Titan is confident of maintaining good growth momentum in the quarters ahead on the back of market share gains, network expansion, and a shift to trusted brands. The company aims to achieve consistent double-digit revenue growth over the next five years by strengthening core businesses such as watches, jewellery, and eyecare through efficient capital allocation plans. Further, profitability is expected to consistently improve with consistent growth in the jewellery business and scaling up in new ventures. It remains one of our preferred picks in the discretionary space."
Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One said, “Titan has been in a stellar bull run in the current financial year. The counter witnessed a breakout around Rs 2790 odd zone and marched in uncharted territory. On the technical front, it is placed well above all the major EMAs on the daily chart, indicating inherent strength, and the significant indicators are aligned with the ongoing trend. As far as levels are concerned, the support is placed around Rs 2920-Rs 2900, followed by the breakout zone of Rs 2800-Rs 2790 levels. And till the mentioned supports are sustained, any minor blip is to be considered as buying opportunity in the counter.”
Ameya Ranadive, CMT CFTe, Equity Research Analyst, Choice Broking sees more upside to the Tata Group stock.
"Titan is currently quoting at Rs 3015 and has seen a good consolidation breakout after trading in a range of Rs 2986-2932. This breakout suggests positive market dynamics and potential for further upward movement. Titan's financial performance is impressive, as reflected by a Pitroski Score of 5.0 and a Z score of 16.23. These scores indicate strong financial strength and stability, positioning the company well in the market. On the technical front, Titan exhibits good momentum with an RSI of 74. The stock has been making new swing highs and higher swing lows, which signifies the continuation of an intact trend.
The ADX at 31 further supports the technical strength of Titan, indicating good counter strength. Considering these factors, Titan appears to be a good accumulation candidate within the buy range of Rs 3015-2960. Short-term targets can be set at Rs 3185-3250. It is important to monitor the stock closely, and a break below Rs 2930 would invalidate the positive outlook. Overall, Titan's positive technical strength and strong financial performance position it as an attractive investment opportunity," said Ranadive.
Abhijeet from Tips2trade said, "Titan looks bullish but also overbought on the daily charts with next resistance at Rs 3053. A daily close below the support of Rs 2903 only could lead to a good correction till next support of Rs 2663 in the near term."
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