This Rakesh Jhunjhunwala pick nears all-time high? Here's how to play the stock

Shares of Titan Company approached their all-time high today amid a strong market rally in the afternoon session. The stock, which forms a key component of ace investor Rakesh Jhunjhunwala's portfolio, gained 1.45 per cent to reach an intraday high of Rs 2,593 on the BSE. The stock is now 3.63 per cent away from touching an all-time high of Rs 2,687.30 it hit on January 7, 2022.

Jhunjhunwala and his wife Rekha together held 4,52,50,970 shares, or 5.09 per cent stake, in the company at the end of December quarter. In the last quarter, Rakesh Jhunjhunwala held 3.57 crore shares, or 4.02 per cent stake, in the firm. His wife Rekha owned 95.40 lakh shares, or 1.07 per cent stake, in the firm.

The large cap stock opened at Rs 2,579 on the BSE against the previous close of Rs 2,555.70. The share has gained 2.56 per cent since the beginning of this year and risen 72.55 per cent in the last one year.

Titan Company shares are trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has gained 9.21 per cent in the last 6 days.

A total of 0.20 lakh shares of the firm changed hands, amounting to a turnover of Rs 5.23 crore. Market cap of the firm rose to Rs 2.29 lakh crore on the BSE.

The stock hit a 52-week low of Rs 1,400 on May 4, 2021.

Geojit Financial is bullish on the stock with a target price of Rs 2,810.

"Titan reported a strong topline growth of 34.0 per cent QoQ (31.7 per cent YoY) in Q3FY22 led by the festive season in October and November 2021. Ramp up in new stores openings and technical advancement would support future volumes for the firm," it said.

"Titan is expected to perform better in the coming quarters with strong operating performance. With a positive outlook, we upgrade our rating to BUY on the stock with a rolled forward target price of Rs 2,810 based on 66x FY24E adjusted earnings per shares," the brokerage added.

The luxury goods maker reported a 135 per cent year-on-year rise in its net profit for the October-December quarter at Rs 987 crore. Revenue from sale of products and services grew 36 per cent to Rs 9,381 crore, while total income rose 31 per cent to Rs 9,570 crore. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) rose 62 per cent to Rs 1,454 crore.

Meanwhile, Sensex gained 792 points to 56,569 and Nifty rose 241 points to 16,902 in the afternoon session. 

Also read: This Rakesh Jhunjhunwala-backed stock rises over 2% on nod to interim dividend

Also read: Rakesh Jhunjhunwala Portfolio: ICICI Securities bets on this stock; here's why