Tata Group's gems and jewellery giant stock, Titan Company is a multibagger in the long term. In 25 years, Titan shares have turned Rs 25,000 to over Rs 2 crore corpus, giving multifold returns. Going forward, Titan has a long runway for growth as the company's business is not easily replicable making it unique and dominating in the industry.
Titan Share Price:
On NSE, Titan shares have jumped by 1.05% to Rs 3,562 apiece on April 19. The stock's 52-week high and low is at Rs 3,886.95 and Rs 2,559.25 respectively. Its adjusted price-to-equity ratio is at 90.46x.
The year 2024 has been broadly bearish as investors booked profit. But in a year, the stock has zoomed by 39% on NSE. Its five year growth is impressive by 213%, making it a multibagger.
Notably, in the longest run, Titan shares have zoomed by an extraordinary 83,319.20%. The stock was at Rs 4.27 apiece on January 1, 1999.
If any investor invested Rs 25,000 in Titan Company on January 1, 1999. 25 years later, their corpus is at Rs 2,08,54,800 or Rs 2.085 crore. They bagged returns of Rs 2,08,29,800 or Rs 2.082 crore.
As per Trendlyne data, Titan shares are trading below 6 out of 8 SMAs, and below 5 out of 9 Oscillators in bearish zone. The 1-year average target price in Titan is Rs 3,882 apiece, hinting at a 9% potential upside ahead. The consensus recommendation from 31 analysts for Titan Company Ltd. is HOLD. While its EPS is expected to grow by 10.7% in FY24.
Among corporate actions, Titan is a dividend-paying stock. Since June 2001, the company has delivered up to 23 dividends. At the latest, the company paid dividends of up to Rs 10 per share in the last 12 months.
Further, Titan underwent ex-split on June 23, 2011, for the ratio of 1:10. This means that the face value of Rs 10 was trimmed to Rs 1.
Moreover, Titan has also carried 1 bonus issue. The first bonus issue was of ratio of 1:1 with effect from June 23, 2011. This means Titan issued 1 stock as a bonus on the existing 1 stock.
Titan Company Share Price Target:
Titan is Motilal Oswal's top investment pick in April. In its key rationale, Motilal highlighted three key pointers. They are:
- Titan released its pre-quarterly update for 4QFY24, where it reported sales growth of 17% YoY in 4QFY24. The domestic division grew 19% YoY.
2. Along with the store network expansion, Titan is also focusing on better execution at the existing stores (added ~340 jewellery stores in the last two years).
3. It has reduced the gold premium compared to peers in a calibrated manner, which has been compensated with other initiatives to protect the operating margin. Management expects a jewellery EBIT margin of ~12-13% despite rising competition.
"We expect 17%/26% revenue/PAT CAGR over FY24-26 as the company's business moats are not easily replicable and with a jewellery market share of ~8% in a sizable ~₹5t market, there is significant headroom for growth, Motilal's note said.
However, Motilal is cautious about the near-term consumption trend.
Thereby, the brokerage has set the highest target of Rs 4,300 on Titan with buy recommendations.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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