Titan shares today: Rakesh Jhunjhunwala portfolio share Titan rose in early trading Monday as the company provided robust figures for the quarter ending June 2022. On a sequential basis, profits rose 61.5 percent. Independent sales for the Tata group company increased by 176 percent to Rs 8,961 crore. On a sequential basis, sales increased by 23 percent. Titan’s share price rose 1 percent, reaching an intraday high of Rs 2,475 on BSE.
EBIT (earnings before interest and tax) for the jewelry industry increased 396 percent year over year to Rs 1,027 crore. The watch and wearables business witnessed its best quarter ever in terms of sales. Income for the company increased 169 percent year over year to Rs 785 crore. Revenues for the eye care business rose 173 percent year-on-year to Rs 183 crore, while EBIT stood at Rs 36 crore in the June quarter.
Rakesh Jhunjhunwala Share Holding
The top investor along with his wife Rekha Jhunjhunwala owns more than 5 percent stake in Titan Company, worth 10,911.30 crore, according to Trendlyne.
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Edelweiss analysts said Titan’s numbers were exceptional, with a 13 percent margin in the jewelry segment being the main high. “Taking into account margin outperformance, we are increasing earnings per share in FY23E by 4 percent. We value Titan at 80 times 9MFY24E EPS (76 times FY24E) – a premium over the five-year average of 60 times – and this reflects the growth trajectory and potential scaling in other industries such as watches & wearables and Caratlane.” said while suggesting a target of Rs 3,119.
Global brokerage Emkay said Titan reported an 8 percent increase from its Ebitda estimates. “Ex-bullion revenue, consolidated EBITDA margin of 13.2 percent was 200 bps higher than pre-Covid levels, led by operating leverage, exit from loss-making companies and 80 bp one-off,” it said.
“We are increasing earnings per share in FY24/25 by 3-4 percent, led by the first quarter beat and optimistic commentary. Titan offers high teen growth prospects and an improving RoIC profile (45 percent against FY25E). We maintain Buy with a target of Rs 2,700 from Rs2,530 previously, valuing Titan at a reduced multiple of 50 times due to a 3 month rollover. Faster traction in Taneira and international operations could provide potential benefit,” Emkay said.
Real estate agency Prabhudas Lillader believes that new launches in Taneira, wearables and Fastrack Prescription Eyewear could emerge as new growth engines for Titan. The company is well positioned to take advantage of long-term growth opportunities, led by gains in jewelry from network expansion, regional pressures and signature advantages; Omnichannel strategy for jewelry, watches and eyewear; new growth engines such as Caratlane, Titan Eye+, Taneira; and access to high-growth segments such as wearables such as smart watches, over-the-head headphones and Truly Wireless earphones, according to analysts.
The brokerage estimates 33.82 percent PAT CAGR over FY22-24 and remains positive given the structural story due to market share gains, strong balance sheet, franchisee-based model and strong brand. It maintains an ‘Accumulate’ rating on the stock with a DCF-based target price of Rs 2,607.
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