Rakesh Jhunjhunwala’s favorite multibagger stock Titan Company has given more than 60 percent returns in 1 year and more than 450 percent in 5 years. Brokerage houses are predicting further growth even after this.
Rakesh Jhunjhunwala Portfolio Stock: After the December quarter results, there is a mixed reaction in the shares of Titan Company. However, the company’s results have been better than expected. Titan’s profit has increased by 136 percent on a yearly basis. Be it jewelery business or watch or eyewear, every segment has seen great growth. The company has performed strongly even after the corona virus epidemic. After more than 60 per cent rise in 1 year and around 450 per cent in 5 years, even though the valuation of the stock is expensive, brokerages are predicting further growth. Most brokerage houses are bullish on the stock. He says that the growth momentum will continue in Titan after that.
Rakesh Jhunjhunwala holds 45,250,970 shares
Let us tell you that the stock of Titan is included in the most trusted shares of stock market veteran Rakesh Jhunjhunwala. It is the largest stock in his portfolio in terms of value. He has a 5.1 percent stake in this company. The company has 45,250,970 shares in his portfolio, whose current value is Rs 11,136.5 crore.
ICICI Securities: ADD
Brokerage house ICICI Securities says that December quarter has been strong for Titan. There has been strong growth in the jewelery business, with a better margin profile, the company has increased market share in the South as well. Management is confident that going forward margins will be better, which will boost growth. At the same time, the company’s eyes are on long-term growth through exports and Carelane.
The brokerage says that the eyewear business has also expanded, with the emphasis on increasing the number of stores going forward. Although a little valuation is expensive, due to which further volatility in the stock can remain in a limit. The brokerage house has fixed a target of Rs 2750 while advising ADD in the stock. Whereas the current price of the share is Rs 2475.
Motilal Oswal: Buy
Brokerage house Motilal Oswal has given a target of Rs 2900 while advising to buy the stock. The brokerage says that the operating margin of the company has been the highest in the last several quarters. EBITDA and PAT have been better than expected in the December quarter. The brokerage house has retained the EPS estimates for FY23E and FY24E as before. FY22E EPS is expected to rise by 9 per cent. The brokerage house says that the growth in Titan is strong and this momentum is going to continue. The earning CAGR of the company has been 24 percent in 5 years and the same trend is expected to continue in future also. Although the valuation of the stock has become very high, even then it will remain bullish in the near term.
Morgan Stanley: Overweight
Brokerage house Morgan Stanley has retained the ‘overweight’ rating in the stock and has increased the target price from Rs 2501 to Rs 2720. The brokerage house believes that the December quarter has been better in terms of results and has performed better than expected. Overall performance is good in every vertical.
(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of The Financial Express. Markets are risky, so take expert opinion before investing.)
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