Rakesh Jhunjhunwala’s favorite Titan Company share price rallied 16.6 per cent in the October to December quarter of the current fiscal.
Titan Company is the biggest stock in Rakesh Jhunjhunwala portfolio, valued at Rs 11,249.4 crore.
Rakesh Jhunjhunwala’s favorite Titan Company share price rallied 16.6 per cent in the October to December quarter of the current fiscal. During the quarter, the company reported a net profit of Rs 987 crore, a 136 per cent on-year increase. The consumer discretionary company posted a 30.6 per cent on-year growth in revenue from operations to Rs 9,515 crore. In the last six month, Titan stock has soared 38.4 per cent, and 65 per cent in one year. “The festive purchases in the quarter have driven Titan’s strong growth in all businesses of the company and the quarter has turned out to be one of the best quarters in terms of growth and profitability,” Managing Director CK Venkataraman said.
Titan Company is the biggest stock in Rakesh Jhunjhunwala portfolio, valued at Rs 11,249.4 crore. According to the shareholding pattern of Titan, Jhunjhunwala held 4.02 per cent stake or 4.52 crore shares in Titan Company in the December quarter. While Rakesh Jhunjhunwala’s wife Rekha’s shareholding in the company stood at 1.07 per cent
Analysts say despite an excellent Q3FY22 earnings with profit doubling, weak global sentiment and rising crude oil prices have ensured Titan’s stock price remains subdued. “Technically, only if Titan starts closing above Rs 2522, we could see upside up to Rs 2700-2760 in the near term,” Pavitraa Shetty, Co-founder & Trainer, Tips2Trades, told Financial Express Online.
The company said that the strong recovery and the product mix improvement helped Titan achieve profit before taxes and exceptional items of Rs 1,317 crore for the quarter compared to Rs 765 crore in the same quarter previous year. ICICI Securities has given an ‘add’ rating to the stock with a target price of Rs 2,750 apiece, a rally of 11 per cent from the previous closing price.
Domestic research and brokerage firm Motilal Oswal Financial Services has recommended to ‘buy’ shares with a price target of Rs 2,900 apiece, an upside of 17 per cent. “Despite gold price volatility and COVID disruptions, Titan’s earnings CAGR has been stellar at 24 per cent for the past five years ending FY22E. We estimate the trend to continue with a similar best-of-breed earnings CAGR of 24 per cent over the next couple of years as well,” it added.
Titan has been consistently performing well and has been expanding their business sustainably with long term growth as core, Vijay Dhanotiya, Lead Technical Research at CapitalVia Global Research, said. “We have witnessed that it has reversed from previous breakout levels and also from the support of 100 EMA. We recommend buying the stock with a target of 2950 and stop loss of 2200,” Dhanotiya told Financial Express Online.
(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)
