Tata Stock Downgraded To Reduce, TP Slashed To Rs 3045: Kotak Institutional

Leading brokerage firm Kotak Institutional Equities today downgraded Tata Group Stock Titan Company Limited shares to reduce from the previous add rating amid unfavourable risk reward. Current market price of Titan Company Limited shares on BSE is Rs 3271.75 per share with intraday fall of 1.99%. Titan Company shares witnessed 11.82% in last 6-months and gained 67.70% in last 2-years. Check details below:

Titan Company Limited Gets Reduce Rating: According to the brokerage firm, "While we admire Titan's execution, its risk-reward remains unfavorable amid these headwinds and high expectations." Factoring these external headwinds, the brokerage firm decided to cut the target price as well for Titan Company shares by approximately 15% to Rs 3,045. Also, the brokerage slashed its FY25-27 earnings-per-stock targets for Titan by 5% to now 10-12%.

KIE sees Titan facing margin pressures from other fronts as well. Firstly, the substantial surge in gold rates necessitates a similar jump in making charges, posing challenges in maintaining EBIT margins for Titan Company. Secondly, increased competition pressures from Malabar and Kalyan forced Tanishq to bring down its markup on gold rates, according to the brokerage firm.

The analyst highlighted external challenges for Titan that may include potential heightened competition due to Aditya Birla Group's Novel Jewels launch. Additionally, the direct or indirect effects of lab-grown diamonds could impact Tanishq's growth and profitability, influencing Titan's future growth trajectory, added Kotak.

Titan Company Share Performance: The 52-week high price of Titan Company share on BSE is Rs 3885.00 per share (as on 30/01/2024) and 52-week low price is Rs 2882.60 per share (as on 07/08/2023), respectively. Titan Company shares have been witnessing pressure as the stock declined 11.04% year-to-date and fell 11.88% in last 6-months. In last 1-week, Titan shares slipped 4.02%. Titan Company shares gained 5.46% in last 1-year, rallied 86% in last 3-years, and soared 155% in last 5-years. In last 10-years, Titan Company stock zoomed 815%.

Tax Update On Latest Dividend: As per the BSE filing of Titan issued as on June 3, 2024, "We are pleased to inform you that the Board of Directors at its Meeting held on 3rd May 2024 have recommended a Dividend of Rs. 11.00 /- per Equity Share of Rs. 1/- each (1100%) for the Financial Year ended 31st March, 2024 and the said Dividend will be payable post approval of the shareholders at the ensuing Annual General Meeting of the Company.

As you are aware, pursuant to the provisions of the Income-tax Act, 1961 ("the Act") as amended by the Finance Act, 2020, dividends paid or distributed by a company after 1st April, 2020 are taxable in the hands of the shareholders. The Company shall therefore be required to deduct tax at source at the time of making payment of the dividend to the shareholders at the applicable rates if declared at the aforesaid AGM."

TDS rate may vary depending on the residential status of the shareholder and the documents submitted to and accepted by the Company under the provisions of the Act, added the BSE filing.

Titan Company Stock Split History: Titan Company undertook stock split once since June 23, 2011. Titan Company split the face value of its shares from Rs 10 to Re 1 in 2011. Titan share traded ex-split on June 23, 2011.
Titan Company Bonus Share History: Titan offered 1 bonus issue since June 23, 2011. The last bonus issue that leading gems & jewellery company declared was in the ratio 1:1 with ex-bonus date fixed as June 23, 2011.

Titan Dividend History: Titan Company announced 24 dividends since July 30, 2001. In last 1-year, Titan Company declared an equity dividend amounting to Rs 21.00 per share. At the current share price of Rs 3274.35 per share, Titan's dividend yield is 0.64%.

About: Titan Company Limited ("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.

Disclaimer:

The stock has been picked from the brokerage report of Kotak Institutional Equities. 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.