Titan Company stock top Sensex, Nifty gainer on three-fold rise in Q1 sales

Shares of Titan Company were the top gainers on Sensex, Nifty today after the Tata Group firm said its sales in the April-June quarter zoomed nearly three-fold on a year-on-year basis, helped by a low base of the Covid-19 impacted quarter in the last year.

The stock, which forms a key component of ace investor Rakesh Jhunjhunwala's portfolio, climbed 7.82 per cent to an intraday high of Rs 2,170.95 against the previous close of Rs 2,013.40 on the BSE.  On Nifty, the stock rose to Rs 2,171.60 against the previous close of Rs 2,013.55, translating into 7.84 per cent gains in early trade.

Titan stock is the top gainer on Sensex and Nifty today. Rakesh Jhunjhunwala and his wife Rekha jointly held 4,48,50,970 shares, or 5.05 per cent stake, in the company at the end of March quarter. In the last quarter, Rakesh Jhunjhunwala held 3.53 crore shares, or 3.98 per cent stake, in the firm. His wife Rekha owned 95.40 lakh shares, or 1.07 per cent stake in the firm.

The stock hit an all-time high of Rs 2,767.55 hit on March 21 this year. It touched a 52-week low of Rs 1,661 on July 20, 2021. The large-cap stock opened with a gain of 5.79 per cent at Rs 2,130. Titan stock is trading higher than the 5-day and 20-day moving averages but lower than 50-day, 100-day and 200-day moving averages.

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The large-cap share has climbed 23.71 per cent in a year but lost 15.37 per cent since the beginning of this year. A total of 0.58 lakh shares of the firm changed hands, amounting to a turnover of Rs 12.55 crore.

The market cap of the firm rose to Rs 1.90 lakh crore on the BSE. Its network expansion and campaigns continued to progress well throughout Q1FY23, which was the non-disrupted first quarter in the last three years, said Titan in its quarterly updates.

"Sales in Q1FY23 grew 205 per cent YoY on a low base and clocked 3-year CAGR of 20.5% over Q1FY20," Titan said.

Meanwhile, Macquarie assigned an outperform rating to the stock in mid-June with a target price of Rs 3,000, 55 per cent higher than the last close of Rs 1935.3.

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"Channel checks suggest demand trends remain healthy as premium end consumers remain relatively resilient to inflationary headwinds," the brokerage said.

"The stock trades close to its 5-yr average PE ratio despite demand strength and visibility on medium-term growth," it added.