Rakesh Jhunjhunwala Portfolio: Motilal Oswal bullish on this Tata group stock; here's why 

Brokerage house Motilal Oswal has maintained its 'Buy' rating on Titan with a target price of Rs 2,900 per share. The Tata group company stock, which is also a part of Rakesh Jhunjhunwala's portfolio, opened 2 per cent higher at Rs 2,138 on BSE.

It highlighted that the expensive valuations in the near term will get burnt off by a rapid pace of growth. Titan remains our top pick in the large-cap consumption space in India, with strong earnings growth visibility and compounding 20 per cent for an elongated period of time, it said.

With a market capitalisation of Rs 1,88,698 crore, the stock is trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages. It has delivered over 46 per cent return in the past year.

Long-term investors have made big gains by investing in this large-cap stock as it has surged over 800 per cent in the last 10 years.

The management said that while the standalone business is currently 93% of the total consolidated business, subsidiaries are geared to deliver faster growth in coming years and their salience to consolidated sales is expected to increase.

"In the Jewelry industry, which is organizing at a rapid space, Titan is clearly at the vanguard among organized players in leading this growth," Motilal Oswal noted.

The brokerage house said that its runway for growth is long, with a market share of just 6 per cent. Unlike other high growth categories, the competitive intensity from organized and unorganized peers in Jewelry is considerably weaker.

Titan reported a 7.21 per cent decline in its consolidated net profit at Rs 527 crore in the fourth quarter ended March 2022. It had posted a net profit of Rs 568 crore in the January-March quarter of FY21, Titan Company said in a regulatory filing.

Its total income was up 4.25 per cent to Rs 7,872 crore during the period under review as against Rs 7,551 crore in the corresponding period of the preceding fiscal.

As per the shareholding pattern available on BSE, 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 the March quarter.

In the September 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.