Buy Multibagger Tata Group Stock For A Target Price Of Rs 3080, Suggests ICICI Direct

Leading brokerage firm ICICI Direct has given buy call to the Tata Group stock Titan Company Ltd for a target price of Rs 3080 apiece with a potential return of 17%. It is a company with high TTM EPS growth. Titan Company Ltd is India's largest manufacturer of quartz watches and the world's sixth largest manufacturer of branded watches.

Titan Company Stock Outlook

The current market price of the stock is Rs 2624 apiece on the BSE. The stock has touched 52-week high at Rs 2767 apiece and 52-week low at Rs 1827 apiece, respectively. According to ICICI Direct, if investors buy the stock at its current market price, it has the potential to surge to Rs 3080 and the time period to achieve this target price is Rs 3080 apiece.

Titan Company Market Capitalization

The company has a market capitalization of Rs 2,32,981.72 crore.

Titan Company 5 Years Return

The stock has given a return of 310% in 5 years, 146% in 3 years, and 19% in 1 year.

Titan Company Strengths

It is a company with high TTM EPS growth. It has registered strong annual EPS growth. The company has good quarterly growth in the recent results.

Titan Company Q1FY23 Result Summary

Titan reported a healthy operational performance with strong beat on the margins front. Buoyed by strong festive/wedding season and a normalised quarter after a gap of two years, the jewellery division registered its second highest ever quarterly revenues in Q1FY23.As guided by the management in its pre-quarterly update, the jewellery division (excluding gold bullion sale) reported robust sales growth of 204% YoY to ₹ 7995 crore (impressive three year CAGR: 24%).

Watches segment reported 169% YoY growth to ₹ 786 crore (110% of pre-Covid levels), whereas eyewear division reported 173% YoY growth to ₹ 183 crore (123% of pre-Covid levels). Overall consolidated revenues (including gold bullion sale: ₹ 356 crore) grew 172% YoY to ₹ 9443 crore.

Improvement in studded ratio and positive operating leverage led to robust EBITDA margins (up 870 bps YoY to 12.7%). Absolute EBITDA was at ₹ 1196 crore with robust three-year CAGR of 28%.

 

About Titan Company

The Titan Company Ltd. was started in 1984 as a joint venture between the Tamil Nadu Industrial Development Corporation (TIDCO) and Tata Group. It has grown to become the world's fifth-largest integrated watch manufacturer.

The company's corporate headquarters are in Bangalore, while the registered office is in Hosur, Tamil Nadu. For FY 2021-2022, the company's total revenue was Rs 29,033 crore. It was up 33% from the revenue of Rs 21,830 crore in FY 2020-2021. On 5 August 2022, the company's market capitalisation stood at Rs 215,980 crore.

Disclaimer

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.