Shares of Titan Company on Wednesday surged 8.1 per cent at ₹425.60, thanks to its better-than-expected third quarter performance. During intraday deal, the stock soared 9.7 per cent to ₹431.55 on the NSE.

On the volume front, 1.22 crore shares of the company changed hands on the NSE and 10.12 lakh shares on the BSE.

Heavy addition in F&O The Titan February futures added 13.17 lakh shares or 19.69 per cent open interest on Wednesday in the NSE derivative segment and closed at ₹427.05.

The jewellery and watch maker on Tuesday reported a 13 per cent increase in standalone net profit at ₹255.75 crore for the third quarter ended December 31, 2016.

Credit Suisse, which maintains neutral stance on Titan, said: “Jewellery business gained market share from the unorganised sector due to the impact of demonetisation. Jewellery performance is very creditable, in part due to the diamond activation, CS said with a revised price target of ₹425 from ₹340.”

JM Financial, which recommended a buy on Titan, said: “We remain positively-biased on Titan.

“Valuation, off the peak of 42x NTM earnings seen in mid-2016, is no longer a major headwind but sustainability of the demand pick-up is critical; Titan’s earnings, we note, are prone to strong upgrades in times of buoyant consumer sentiments.” According to Reliance Securities, “We continue to remain positive on Titan owing to its leadership in organised jewellery market, success of new products and recovery in watch business. Envisaging Titan to deliver 12 per cent and 18.4 per cent CAGR in revenue and profit respectively, we maintain our buy recommendation on the stock with an upwardly revised target price of ₹457.”

Prognosis for fourth quarter of current fiscal and beyond (market share gains as unorganised segment struggles) is promising, said Kotak Institutional Equities and added: “Recent run-up, however, captures the positives and leaves little margin of safety on potential risks from potential government actions on ‘gold as store of black money’.

Related Topics