Stock To Buy: This Multibagger Tata Group Stock Posted 18% Topline Growth In Q2FY23, Buy For 11% Gains

Ashika Research maintains a buy call on Titan Company Limited for a potential 11% upside with a target price of Rs 2,970 per share. Titan Company is a large-cap Tata Group firm that operates in various industries and operates brands such as Fastrack, Tanishq, & Titan Eye+ and two subsidiaries CaratLane, and Titan Engineering & Automation Limited. It has a market capitalisation of Rs 242,410.01 Crore. Titan has announced their 2QFY23 pre-quarterly update.

According to its regulatory filing, "The Company witnessed healthy double-digit growth across most businesses with overall sales growing 18% YoY. Retail network continued the pace of expansion adding 105 stores (net) for the quarter. The outlook for festive season (from Navratri in end Sep'22) continues to be optimistic and is visible in positive consumer sentiment across categories."

Stock Outlook & Returns

The current market price of the stock is at Rs 2,708.75 per share on NSE, trading 0.80% down from its previous close of Rs 2,710 per share. The stock hit its 52 week high in March 2022, at Rs 2,768 and currently, it is trading near its 52 week high level. Whereas, it hit its 52 week low in July 2022, at Rs 1,825.05/share.

The stock surged 5.28% in a week, giving a positive return. It gave 26.28% positive return in the past 3 months, whereas, in the past 1 year, it gave 14.92% positive return. The stock increased by 28.34% and 11.07%, respectively, over the last three and six months. It gave119.49% in three years and gave a multibagger 340.04% in the past five years.

 

Reported a solid Q2FY23

Titan reported solid Q2FY23 business growth with overall sales grew by 18% YoY. The company, which operates in the segments as Jewellery, Watches & Wearables, and EyeCare has witnessed healthy double-digit growth across most businesses. It added 105 stores in its retail network in the second quarter of the current fiscal. Management remain optimistic on demand environment and same is visible from positive consumer sentiment across geographies.

The product-mix in the jewellery division improved compared to last year but continued to be below pre-pandemic levels. Its Watches & Wearables grew 20% YoY, clocking its highest quarterly revenue while the EyeCare business saw 7% YoY growth. On 3 year basis company's market share was 4-5% and now it is 6-7% and market size has grown from Rs 350,000 cr to Rs 4,20,000 cr.

Brokerage maintains buy with a target price of Rs 2,990

The stock has rebounded sharply in the past 2.5 month and is presently at the verge of giving a breakout from the previous swing high of Mar'22. On the oscillator front, the stock is presently trading in neutral price reading in weekly time frame indicating room for further upside. Volume in the stock has also surpassed the 30-day average indicating of large participation in the direction of trend. Hence one can expect the stock to head further higher from here with initial target of 2990 as it happens to be the projected 123.6% extended retracement of the entire decline since Mar'22 (2768-1825).

Disclaimer

The stock has been picked from the brokerage report of Ashika Research. 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 making any investment decision.