Rakesh Jhunjhunwala-owned Titan Company’s inventory value zoomed 6.8% on Thursday’s opening bell to hit a excessive of Rs 2,170.95 per share. The inventory soared larger as traders reacted to the quarterly replace posted by the corporate, the place it stated that the April-June quarter of the present monetary 12 months was a near-normal first quarter after a spot of two years. “Sales in April-June grew 205% on-year on a low base and clocked a 3-year CAGR of 20.5% over Q1FY20, the only non-disrupted first quarter in the last 3 years,” Titan stated in an replace.
Robust enterprise progress
Titan has knowledgeable the bourses that its Jewellery division noticed 207% on-year progress within the first quarter, whereas the watches and wearables enterprise grew 158%. However, it have to be famous that the sharp bounce will also be attributed to a decrease base. “The (Jewellery) division had a good start to FY23 with robust sales on the auspicious occasion of Akshaya Tritiya in May month after 2 years of Covid induced lockdowns in this period,” Titan stated.
Eyecare enterprise of the corporate noticed a progress of 176% on-year whereas different enterprise, which incorporates fragrances and style equipment, Indian gown put on, noticed a large 455% progress from the earlier 12 months. Standalone enterprise progress was reported at 205% and 120 new shops had been added.
Analysts views
Despite the sturdy efficiency, analysts at Axis Capital have maintained a ‘Reduce’ ranking on the scrip. “We expect standalone sales ex-bullion to grow by ~207% to Rs 75.7 bn (~21% on 3-year CAGR),” analysts stated. “Overall standalone revenue is expected to grow by ~169% YoY to Rs 87.4 bn; 21% on 3-year CAGR basis with similar 3-year CAGR at EBITDA level,” they added. Axis Capital has a Rs 2,050 per share goal value on Titan, which suggests draw back from Thursday’s opening value.
Kotak Securities, paying attention to the sturdy progress in Titan’s enterprise stated that even when Titan delivers flat jewelry gross sales (on-year) over 2Q-4QFY23E, it should finish the 12 months with 22% progress. “Titan’s LT attractiveness comes from low market share in a large addressable market and wide gap versus the competition and focus on keeping its lead,” Kotak Securities stated whereas sustaining their ‘ADD’ ranking on Titan inventory. The brokerage agency has pinned a good worth of Rs 2,400 on the scrip.
Rakesh Jhunjhunwala’s favorite inventory
Titan Company is also known as Rakesh Jhunjhunwala’s favorite inventory. The firm is the biggest shareholding, in worth phrases, in huge bull Rakesh Jhunjhunwala’s portfolio. At the tip of March this 12 months, Rakesh Jhunjhunwala owned a 5.1% stake within the firm. The worth of his stake within the firm is north of Rs 9,500 crore. Big Bull has now owned shares of Titan firm for many years.
Source: www.financialexpress.com”