
Rekha Jhunjhunwala's biggest stock bet Titan Company Ltd has come out with its March quarter business updates, where it suggested that despite a high base and volatility in gold prices, demand trends remained steady. Analysts largely stayed neutral to positive on the Tata group stock, as they cited footfalls rising 17 per cent on back of 19 per cent growth in domestic jewellery with heathy double digit same store sale growth and 7 per cent growth in W&W driven Helios and International portfolio.
For the quarter, Titan added 27 stores in India and one each in Dubai and Chicago.
Rekha Jhunjhunwala held 47,695,970 shares or 5.37 per cent stake in Titan Company as on December 31, 2023. That stake was worth Rs 17,908 crore at Titan's Monday intraday price.
The stock was trading flattish at Rs 3,756.50.
"Despite fierce competition in jewellery, Titan expected to maintain operating margin given competitive edge in design and sourcing and higher ticket size with further improvement in studded ratio. With strong pace of growth momentum and focus on improving wedding sales contribution in south we remain positive on Titan and maintain BUY rating with a DCF based target of Rs 4,255 (implying 58.1x FY26E EPS)," Centrum Broking said.
Motilal Oswal in its preview note expects Titan to report 22.3 per cent YoY rise in net profit at Rs 900 crore on 21.3 per cent YoY rise in sales at Rs 12,600 crore. Gross profit margin is expected to decrease 70 basis points YoY, while Ebitda margins remains flat YoY. This brokerage has a 'buy' rating and a target of Rs 4,300 on the stock.
Morgan Stanley has Equal-weight on the stock with a target of Rs 3,290. CLSA suggested a 'Buy' rating on the stock with a target of Rs 4,574 per share.