Investor Rekha Jhunjhunwala minted Rs 400 crore within seconds on Monday morning, as Titan Company Ltd shares climbed over 2 per cent following better-than-expected September quarter update. Jhunjhunwala, whose 5.32 per cent stake in the jewellery maker was worth Rs 17,301 crore as on Friday, saw a notional jump of Rs 409 crore today, as analysts gave thumbs up to the stock post a beat on Q2 sales.
Titan Company, the biggest Jhunjhunwala stock bet in value terms, has exceeded growth expectations across most business segments, Emkay Global said in a note. Importantly, the jewellery segment has reported a significant improvement with 26 per cent growth in Q2 against expectation of 15 per cent, Emkay Global said. Titan Company had reported a growth of 9 per cent in Q1.
Despite fierce competition in jewelry, Titan is expected to maintain revenue momentum, driven by leveraging synergy in channel expertise driving volumes, focus on premium watch brands, higher investments, and deepen cost initiatives through War-on-Waste program, said Centrum Broking.
This brokerage maintained Buy rating on Titan Company with a target price of Rs 4,327.
"LTL growth has also inched upwards to the mid-teens vs 3 per cent in Q1, likely triggered by a big 900 bps duty cut. Revenue mix is likely a tad weaker with low-double-digits growth in the high-margin studded segment. However, Titan is comfortably placed to meet its 12 per cent jewelry EBIT margin guidance in FY25. Q2 outperformance should address investor concerns around potential moderation in growth for Titan," Emkay Global said.
This brokearge has upped its earnings estimates 4-5 per cent and recommended a 'Buy' rating on the stock with a revised target price of Rs 4,400 per share.
Antique Stock Broking said that Titan Company, with its strong brand saliency across categories, superior execution should be able to fight competition and deliver strong performance over the long term.
"We maintain our positive stance on Titan and Buy recommendation with a target price of Rs 4,485, valuing the stock at 60 times PE on 1HFY27E EPS," Antique said.