Titan shares hit record high as CLSA sees over 20% upside

Shares of Titan Company in Tuesday’s trade gained over 1 per cent to hit their record high of Rs 3,383.75 apiece on the BSE amid rising gold imports that surged to the highest in 31 months. As per a Reuters report, as gold prices softened ahead of the festivities amid a decline in US bond yields, demand for gold by jewellers logged a 60 per cent year-on-year (YoY) increase.
 
Global brokerage CLSA has maintained its bullish outlook on the counter with a revised target price of Rs 4,029. The target was earlier set at Rs 3948 per share.  

CLSA given the growth in an expanding market foresees Titan’s EPS to clock a growth of 24 per cent/ 21 per cent between FY23-26 and FY23-33, respectively, driven by geographical expansion, new formats and luxury growth.  We are 16%-28% above consensus for FY25-26, added the brokerage in its note on the company.

Further media reports highlighted that the company’s jewellery store, Tanishq, witnessed high demand for jewellery worth over Rs 5 lakh during the festive season. 

Rekha Rakesh Jhunjhunwala holds a substantial 5.37 per cent stake in the company as of the September quarter. This is ownership in 4.76 crore equity shares in the company.

On a year-to-date basis, shares of Titan Company have zoomed by 32 per cent, while in the last 5-year it has delivered 266 per cent return.

Post the company’s September quarter, brokerage Motilal Oswal maintained a buy with a target price of Rs 3900. “Management remains optimistic on the festive and wedding seasons despite the upswing in gold prices. The company’s other businesses such as watches, wearables, and eyecare, also consistently delivered healthy performance,” noted the brokerage’s report.

The ‘buy’ on the target has been premised on 65xFY25E EPS), said the brokerage. Further, it has listed the company as its top Consumer Discretionary idea in India.