Titan Company zooms 10.7 per cent; market cap ticks past ₹2-lakh crore

Our Bureau Chennai | Updated on October 07, 2021

Analysts hike target price, thanks to firm’s all-round growth

Shares of Titan Company on Thursday were the top gainer on the BSE Sensex, after the company said it witnessed a strong recovery in demand in the July-September quarter. Its sales in most of its divisions have either surpassed the pre-pandemic level or close to it.

The stock closed 10.7 per cent higher at ₹2,376.20 on the BSE, after hitting an all-time high of ₹2,383.85 during the day.

The market capitalisation has also crossed the ₹2-lakh crore mark, On the NSE, it jumped 10.60 per cent to settle at ₹2,375.35. During the day, it rallied 11.01 per cent to its 52-week high of ₹2,384.25. On the Nifty 50, the stock was the second larger gainer after Tata Motors.

Digital channel

“Most stores are now fully operational barring a few in select towns, having localised restrictions, with overall store operation days exceeding 90 per cent for the quarter,” Titan said in its quarterly updates. Apart from its thrust on the digital channel, Titan has accelerated its retail network expansion during the quarter.

“The company witnessed strong recovery in demand after the second wave with sales moving swiftly above or close to pre-pandemic levels in most of the divisions,” said Titan.

Phenomenal growth

In terms of revenue, in the jewellery segment, which contributes a larger portion of its turnover, it reports 78 per cent growth in Q2FY22. Motial Oswal Financial said Titan’s strong sales growth (78 per cent y-o-y excluding bullion sales) in the jewellery segment is outstanding.

“Even on a two-year basis, it has delivered 32 per cent sales CAGR, which is phenomenal,” Motial Oswal said while maintaining a Buy rating with a target price of ₹2,460.

Another domestic brokerage, Emkay Global, said full unlocking and the upcoming festive/wedding season are likely to further boost revenues and offer more upsides. “Given the solid growth and earnings outlook, we raise our September 22 target price to ₹2,530 (from ₹2,000),” it said.

Published on October 07, 2021

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