This Large cap Tata Group Stock Can Soar 21%, "Buy" Says Prabhudas Lilladher

Prabhudas Lilladher has assigned "Buy" on Titan Company Ltd (TTAN) with a target price of Rs 2,905 apiece target price. It sees a potential upside up to. Titan Company is a large cap Tata Group company that operates in a diversified sector and offers products such as Gems & Jewellery, Eyewear, and watches. It has a market capitalisation of Rs 2,12,891 crore.

Titan Company Stock Overview & Performance

The Titan Company stock on NSE is currently trading at Rs 2,411.55 apiece. Opened at Rs 2,320.10 apiece, while the previous close was 2,308.10 apiece. Trading 4.48% up from the previous close. The stock recorded its 52 week high on 31 October 2022 at Rs 2,791 apiece and 52 week low on 1 July 2022 at Rs 1,825.05 apiece.

The stock has gained 3.28% in the past 1 week. It has fallen 7.79% in the past 1 month and 12.8% in the past 3 months, respectively. In the past 1 year, it has fallen 2.62%. It gave 103.14% in the past 3 years. The stock has given a higehst 193.12% in the past 5 years.

Demand trends remain intact, Buy for Rs 2,905 target price

Prabhudas Lilladher said, "We upgrade the stock to BUY and increase our FY23/FY24/FY25 EPS estimates by 1.5%/2.0%/2.0% and target price to Rs2905 (Rs2875 earlier) given strong underlying demand trends across divisions in Jan23 and ~17% correction from the peak. 3Q results show disappointment in jewellery margins as one off impact of gains in studded business waned off. Jewellery business outlook remains robust with Golden Harvest scheme enrollments & gold exchange back to pre covid levels."

It added, "We believe TTAN is well placed to capitalize on long term growth opportunities led by 1) jewellery share gains due to network expansion, regional thrust and hallmarking benefits 2) Omni-channel strategy across jewellery, watches and eyewear 3) new growth drivers like Caratlane, Titan Eye+, Taneira and 4) entry into high growth segments like wearables such as smart watches, over the head headphones and Truly Wireless earphones. Eyewear and CaratLane are have reached critical mass with 9MFY23 EBIT in Eyewear at Rs960mn while CaratLane reported profit of Rs1.14bn. TTAN currently trades at 51.2x/43.7x FY24/FY25E EPS with 18.4% EPS CAGR over FY23-25. Upgrade to Buy."

Disclaimer

The stock has been picked from the brokerage report of Prabhudas Lilladher. 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 consult with certified experts before making any investment decision.