During intra-day trading on BSE, shares of Titan Company rose 1.5 percent to a record high of Rs 1784.25. In less than a year, this favorite stock of Big Bull Rakesh Jhunjhunwala has gained 91 per cent from its 52-week low of Rs 935.20. Talking about this month, Titan’s shares have given returns of up to 12 percent. Due to the easing of lockdown in most states, improvement in vaccination rate and expectation of growth in the jewelery segment in the next 2-3 years, buying in Titan shares has increased. Apart from this, the government has made gold jewelery hallmarking mandatory from June 15, 2021. Under this, jewelers will sell hallmarked gold jewelery of 14, 18 or 22 carat. Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala together hold 4.49 crore shares in Titan Company. This figure is till the end of March 2021 quarter.
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Titan may cross 1800 level in a few weeks
- Titan share prices have been rising since the beginning of this month, when it crossed its resistance level. Due to the increase in Corona cases, the government had increased the deadline for gold hallmarking mandatory to 15 June 2021, which increased the buying in the stock. Likita Chepa, Senior Research Analyst, Capitalvilla Global Research, told Financial Express Online that investors are positive on this stock due to the expectation of increasing demand. He said that Titan Market is taking initiative to increase the stock, which will improve its performance, which has further strengthened the investor’s confidence in the stock.
- Analysts at Edelweiss have a buy call on the stock with a target price of Rs 1890. Apart from this, Titan’s presence in many segments, focus on expansion in other cities including Tier 2 and Tier 3 cities and rising demand for jewelery make this stock a better option for long term investment by analysts.
- According to Vikas Jain, Senior Research Analyst, Reliance Securities, the stock has crossed the level of Rs 1620 and after that it has remained bullish. According to Jain, the sentiment in the retail sector is improving due to the unlocking process and in the next few weeks it can cross the level of Rs 1800.
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After booking profit, you can also look at investment
According to AR Ramachandran, Co-Founder and Trainer, TipstoTrade, technically speaking, investors should book some profits as it has entered the overbought zone. According to Ramachandran, the level of Rs 1620-1660 should be a better support zone where new investors can re-enter.
In a note last month, HSBC Securities had said that mandatory hallmarking would determine the pricing behavior of the trade, leading to consolidation and reducing the price differential between jewellers. This will benefit the organized jewelers and will further strengthen the already strong position of Titan. Titan has a better chance of increasing its share in the unorganized market (70 per cent).
(Article: Surbhi Jain)
(Stock recommendations in this story are given through research analysts and brokerage firms and Financial Express Online does not take any responsibility for investment advice of any kind. Investments in capital markets are subject to risks. Before making any investment decision, Be sure to contact your advisor.)
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