Rakesh Jhunjhunwala’s portfolio inventory Titan Company posted practically 8 per cent on-year fall in standalone web revenue to Rs 491 crore throughout the January-March quarter. The firm’s board additionally introduced a dividend of Rs 7.50 per fairness share. Even as Titan posted weak quarterly earnings on pandemic-related restrictions on bodily outlets and volatility in gold costs, a minimum of three brokerage corporations are bullish on the inventory, and see as much as 22 per cent potential upside.
Ace investor Rakesh Radhyshyam Jhunjhunwala held 3.53 crore shares or 3.98 per cent stake, on the finish of March quarter, from 3.75 crore shares or 4.23 per cent stake in Titan Company in December quarter, in keeping with the shareholding sample of the general public shareholders. His spouse Rekha Jhunjhunwala owned 95.40 lakh shares or 1.07 per cent stake in Titan. Jhunjhunwala and his spouse personal 5.05 per cent stake within the Tata group firm. With Rs 7.50 per share dividend, Rakesh Jhunjhunwala and his spouse could earn Rs 37.87 crore.
Motilal Oswal Financial Services has really useful to purchase Titan shares with a worth goal pegged at Rs 2,900 apiece, up 22 per cent from final shut. The brokerage agency famous that Titan has a powerful progress runway, given its market share of lower than 10% and continued struggles confronted by its unorganized and arranged friends. Its medium-to-long-term earnings progress visibility is nonpareil. “Despite the volatility in gold prices and COVID-led disruptions, its earnings CAGR has been stellar (24%) for the past five-years ending FY22. We expect this trend to continue, with over 20% earnings CAGR in the next couple of years. The stock’s near-term multiples appear expensive, but its long runway for profitable growth warrants premium multiples,” it added.
Titan additionally offers in watches and wearables, eyewear, perfumes, amongst different merchandise, which helped help its efficiency throughout the quarter. The watches & wearables enterprise reported earnings of Rs 622 crore, a 12% progress.
Analysts at Prabhudas Lilladher see over 13 per cent upside within the inventory, with goal worth at Rs 2,701 apiece. “Titan is well placed to capitalize on long term growth opportunities led by jewellery share gains due to network expansion, regional thrust and hallmarking benefits; Omni-channel strategy across jewellery, watches and eyewear; and new growth drivers like Caratlane, Titan Eye+, Taneira and 4) entry into high growth segments like wearables such as smart watches, over the head headphones and Truly Wireless earphones,” they stated.
ICICI Securities has given an ‘add’ ranking to the inventory, with a worth goal of Rs 2,387 apiece, a 7 per cent upside. “We retain ‘add’ with a DCF-based revised goal worth of Rs 2,550 (was Rs 2,750 earlier). Key draw back dangers are irrational aggressive setting and potential shift to fastened making costs that might restrict long-term advantages from working leverage.
Source: www.financialexpress.com”