Rekha Jhunjhunwala portfolio stock: Titan shares Q2 update. Motilal Oswal sees 15% upside
Titan Company: Motilal Oswal sees standalone revenue for the second quarter to jump 20 per cent YoY, led by double-digit growth in the number of buyers and ticket sizes.
- Oct 9, 2023,
- Updated Oct 9, 2023 8:12 AM IST
In its September quarter business update, Titan Company Ltd said its jewellery segment revenue jumped 19 per cent in the September quarter and that it added a net of 39 jewellery stores for the quarter. The growth in jewellery segment was led by studded activations, new collection launches, a healthy wedding season and high-value studded purchase.
Overall, sales, which included watches & wearables, EyeCare and emerging businesses grew 20 per cent YoY for the quarter and the company added a total 68 stores, excluding CaratLane's 13 stores. CaratLane recorded 45 per cent revenue growth for the quarter. Watches & wearables segment saw healthy sales in the mid-to-premium watches segments while for EyeCare segment, international brands grew faster than in-house brands.
Motilal Oswal sees standalone revenue for the second quarter to jump 20 per cent YoY, led by double-digit growth in the number of buyers and ticket sizes. It said the Tata group firm added 81 stores for the quarter and was making a healthy progress in retail store expansion, with the retail footprint, including CaratLane, rising to 2,859 stores.
Rekha Jhunjhunwala owned 47,595,970 shares, or 5.36 per cent, stake in the Tata group company as of June 30, which was worth Rs 15,750 crore at last count.
"Earnings growth visibility for Titan remains strong. It has compounded earnings by 20 epr cent for an elongated period. In the Jewelry industry, which is becoming an organised industry at a rapid pace, Titan is clearly at the vanguard in terms of growth among organised players. Its runway for growth is long, with a market share of 7 per cent," Motilal Oswal Securities said.
The domestic brokerage said that unlike other high-growth categories, competitive intensity from organised and unorganised peers in jewellery is considerably weaker. The structural investment case for Titan Company is intact, it said while suggesting a BUY rating on the stock with a target price of Rs 3,795.
The target price suggests nearly 15 per cent upside over Friday's closing price of Rs 3,311.15 on BSE.
Also read: Adani Power, Adani Enterprises, Adani Ports: Trading strategies for these Adani stocks
In its September quarter business update, Titan Company Ltd said its jewellery segment revenue jumped 19 per cent in the September quarter and that it added a net of 39 jewellery stores for the quarter. The growth in jewellery segment was led by studded activations, new collection launches, a healthy wedding season and high-value studded purchase.
Overall, sales, which included watches & wearables, EyeCare and emerging businesses grew 20 per cent YoY for the quarter and the company added a total 68 stores, excluding CaratLane's 13 stores. CaratLane recorded 45 per cent revenue growth for the quarter. Watches & wearables segment saw healthy sales in the mid-to-premium watches segments while for EyeCare segment, international brands grew faster than in-house brands.
Motilal Oswal sees standalone revenue for the second quarter to jump 20 per cent YoY, led by double-digit growth in the number of buyers and ticket sizes. It said the Tata group firm added 81 stores for the quarter and was making a healthy progress in retail store expansion, with the retail footprint, including CaratLane, rising to 2,859 stores.
Rekha Jhunjhunwala owned 47,595,970 shares, or 5.36 per cent, stake in the Tata group company as of June 30, which was worth Rs 15,750 crore at last count.
"Earnings growth visibility for Titan remains strong. It has compounded earnings by 20 epr cent for an elongated period. In the Jewelry industry, which is becoming an organised industry at a rapid pace, Titan is clearly at the vanguard in terms of growth among organised players. Its runway for growth is long, with a market share of 7 per cent," Motilal Oswal Securities said.
The domestic brokerage said that unlike other high-growth categories, competitive intensity from organised and unorganised peers in jewellery is considerably weaker. The structural investment case for Titan Company is intact, it said while suggesting a BUY rating on the stock with a target price of Rs 3,795.
The target price suggests nearly 15 per cent upside over Friday's closing price of Rs 3,311.15 on BSE.
Also read: Adani Power, Adani Enterprises, Adani Ports: Trading strategies for these Adani stocks