Titan Company share rose nearly 3% today as global brokerage Macquarie retained its "outperform" call on the stock. It gave a target of Rs 3,000 for the luxury goods maker, an upside of 25 percent from the current market price. The share touched an intraday high of Rs 2,440.1, rising 2.75% on the BSE.
Titan Company share trades higher than 5 day, 50 day, 100 day and 200 day moving averages but lower than 20 day moving averages. Total 0.28 lakh shares changed hands amounting to turnover of Rs 6.65 crore.
The Tata Group stock has gained 76% in one year and risen 50.65% since the beginning of this year. Later, the share saw profit booking and closed 0.57% lower at Rs 2,361 against previous close of Rs 2,374.90 on BSE.
The large cap stock hit 52-week high of Rs 2,678 on October 18, 2021 and 52-week low of Rs 1,335 on December 1, 2020.
"The company has guided to 10 percent plus jewellery sales growth and 12-13 percent margin. Its analytics/design investments enhance lead against its peers while the company is cautious on the new Omicron impact," Macquarie said.
It was not witnessing any material concerns on demand and "is one of our preferred picks in the consumer space", the brokerage firm said.
In early October, Titan said it has witnessed a strong recovery in demand in the July-September quarter, and its sales in most of its divisions have either reached above or close to pre-pandemic levels.
Most stores are now fully operational barring a few in select towns, having localised restrictions, with overall store operation days exceeding 90 per cent for the quarter, said Titan in its quarterly updates.
Titan reported a strong recovery across its divisions of jewellery, eyewear, watches, and wearables in the second quarter of the financial year 2022. The Tata group company said most of its divisions had either crossed or were swiftly moving to reach the pre-pandemic levels. Most of its stores were fully operational except a few in towns where localised restrictions were in place, with overall operation days exceeding 90 percent for the quarter, the company said.
In Q2 of the current fiscal, the company reported a 222 per cent year-on-year (YoY) rise in its net profit at Rs 641 crore on the back of a strong recovery in its consumer business. Profit in the year-ago period stood at Rs 173 crore.
Total income rose 65 per cent to Rs 6,571 crore in Q2 compared to Rs 3,983 crore in the year-ago period.
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