scorecardresearchTime to buy? Macquarie sees Titan hitting ₹3,000 in next 1 year

Time to buy? Macquarie sees Titan hitting 3,000 in next 1 year

Updated: 21 Jun 2022, 12:09 PM IST
TL;DR.

Macquarie said the Tata group firm remains a part of its Asia marquee 'buy' list. The brokerage has an 'outperform call on the stock as it believes that the demand trends for the firm continue to be healthy.

Macquarie said the Tata group firm remains a part of its Asia marquee 'buy' list. The brokerage has an 'outperform call on the stock as it believes that the demand trends for the firm continue to be healthy.

Macquarie said the Tata group firm remains a part of its Asia marquee 'buy' list. The brokerage has an 'outperform call on the stock as it believes that the demand trends for the firm continue to be healthy.

Previously close at 1,961 per share, brokerage house Macquarie sees Rakesh Jhunjhunwala-backed Titan hitting 3,000 in the next 1 year, indicating an upside of 53 percent from the current market price.

Macquarie said the Tata group firm remains a part of its Asia marquee 'buy' list. The brokerage has an 'outperform call on the stock as it believes that the demand trends for the firm continue to be healthy.

"Channel checks suggest demand trends remain healthy as premium end consumers remain relatively resilient to inflationary headwinds," the brokerage said.

It added that the stock trades close to its 5-yr average PE ratio despite demand strength and visibility on medium-term growth.

The stock has risen around 15 percent in the last 1 year but has declined around 18 percent in 2022 so far. Post the recent decline, experts believe that the valuation of the stock is fair.

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Titan stock price trend

Ace investor Rakesh Jhunjhunwala and his wife Rekha jointly hold 4.48 crore shares, or a 5.05 percent stake in the company as of the March quarter.

Meanwhile, another brokerage Credit Suisse had maintained a 'neutral' call on the stock with a target price of 2,600, indicating an upside of around 23 percent.

Further, domestic brokerage house Motilal Oswal also said that Titan remains its top pick in the largecap consumption space on the back of a strong earnings growth visibility. It has a 'buy' call on Titan with a target price of 2,900, implying an upside of around 50 percent.

In the March quarter, the company reported a 7.21 percent decline in its consolidated net profit at 527 crore versus a net profit of 568 crore in the same quarter last year.

Its total income of the firm rose 4.25 percent to 7,872 crore in Q4 as against 7,551 crore in the year-ago period. Revenue from sales was also down 1.14 percent to 7,267 crore in the fourth quarter as against 7,351 crore a year ago.

Partial lockdowns, volatility in the gold prices and uncertain geopolitical conditions dented its performance in the fourth quarter, the firm stated.

"Despite frequent disruptions in the quarter owing to Covid wave 3 and other geopolitical factors, the quarter has been satisfactory in terms of growth and profitability," said CK Venkataraman, Managing Director, Titan Company said post the earnings.

Its jewellery business reported a 4 percent YoY decline in revenue to 6,132. However, its watches and wearable business witnessed a 12 percent YoY rise to 622 crore. Meanwhile, its eyecare business also saw a 6 percent YoY rise in revenue to 134 crore.

For the financial year FY22, the company's net profit surged 148.5 percent to 2180 crore from 877 crore in the previous fiscal. Its revenue from operations also rose 35.62 percent to 25,831 crore in FY22 from 19,046 crore in FY21.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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First Published: 21 Jun 2022, 12:09 PM IST