Tata Group-backed gems and jewellery stock Titan Company is recommended to buy. Prabhudas Lilladher has added the stock in its technical pick, with target price as high as to Rs 3,670 apiece. The recommendation of BUY comes despite double-digit decline in profitability of the company in Q2FY25. Currently, Titan share price is below Rs 3,200 with market cap of Rs 2,82,879.74 crore.
Titan Share Price:
After market hours of November 8th, Titan share price closed at Rs 3186.35 apiece, up by 2.13% on BSE. The stock's 52-week high and low is at Rs 3,885 apiece and Rs 3,059 apiece respectively. YTD, the stock declined by 13.30% on BSE so far.
Prabhudas Lilladher On Titan:
Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher said Titan stock has witnessed a decent erosion from 3870 zone and has arrived near the previous low made at 3,130 levels where it has shown consolidation and with signs of improvement in the bias.
That being said, the analyst anticipates further upward move in the coming days.
She added in her note that the RSI has stabilized near the oversold zone and with an indication of positive trend reversal. She said, "we expect further rise with much upside potential visible from current rate."
"Wit the chart looking technically attractive, we suggest to buy the stock for an upside target of Rs 3,670, keeping the stop loss of Rs 2,900 level," Parekh lastly said.
Parekh's recommendation comes after Titan recorded 26% revenue growth in Q2FY24 despite profitability being impacted.
In the quarter, Titan (consolidated) recorded an income of ~13,660 crores growing by 26% in Q2FY25 compared to Q2FY24. The PBT was lower by 24% at ~948 crores compared to Q2FY24 mainly due to impact of custom duty reduction.
Titan Corporate Actions:
Since 2001, Titan has rewarded investors with bonus issues, stock splits, and hefty dividends.
Dividend: The company delivered up to 24 dividends since July 2001. In the last 12 months, the dividend payout was to the tune of Rs 11 per share. Currently, it has a dividend yield of 0.35%.
Stock Split: The stock has split only once and that was in June 2011. The stock split ratio was of 1:10, meaning the face value of Rs 10 was trimmed to Rs 1.
Bonus Issue: In June 2011, the company rewarded investors with bonus issue of 1:1 ratio.
Titan Company Limit ed ("Titan"), a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation (TIDCO), commenced its operations in 1987 under the name Titan Watches Limited. In 1994, Titan diversified into Jewellery (Tanishq) and subsequently into EyeCare. Over the last three decades, Titan has expanded into underpenetrated markets and created lifestyle brands across different product categories including fragrances (SKINN), accessories and Indian dress wear (Taneira) and thoughtfully designed Women Bags (IRTH). Titan is widely known for transforming the watch and jewellery industry in India and for shaping India's retail market by pioneering experiential retail.
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