Titan shares hit 52-week low, here are fresh price targets

Shares of Titan Company Ltd fell to their 52-week low on Wednesday even as the broader market saw a huge rally ahead of Donald Trump's April 2 tariff deadline. Titan Company shares slipped to their 52-week low of Rs 2,972 in the current session against the previous close of Rs 2,986.50 on BSE. On the other hand, the stock hit an all-time high of Rs 3,866 on September 30, 2024. 

Late investor Rakesh Jhunjhunwala's wife Rekha Jhunjhunwala owned 1.07% or 95.40 lakh shares of Titan Company during the period in the December 2024 quarter. 

The large-cap stock later rose 4.45% from its 52 week low to touch a day high of Rs 3,104 on BSE. Market cap of the firm climbed to Rs 2.75 lakh crore. It closed 3.73% higher at Rs 3097.80.  

Titan stock is trading higher than the 5-day, 10 day, 20-day but lower than the 30 day, 50-day, 100-day, 150 day and 200-day moving averages.

RSI of the stock stands at 34.3, implying that it is trading neither in the oversold nor in the overbought zone. 

Brokerage Macquarie has maintained its outperform call with a target price of Rs 4000. 

Titan remains the preferred pick in the consumer space, said Macquarie. 

A rise in gold lease costs for smaller players strengthens Titan's competitiveness. Macquarie reduced its FY25-27 EPS by 3-4% due to higher lease costs (Trump's tariff) and near-term impact on jewellery demand from rising gold prices. 

Ravi Singh, SVP - Retail Research, Religare Broking said, "Titan has shown a strong reversal from the key support level of Rs 3000 and appears promising for the near term, with potential targets of Rs 3240 to Rs 3320. On the daily charts, the stock has formed a double-bottom pattern, indicating further bullishness in the coming days.Currently, the stock is trading below the 50-day EMA. Once it sustains momentum above this level, it could move toward the Rs 3500 mark. In FY24, India's jewelry exports to the US were valued at $9.9 billion, accounting for a significant 30% of the country’s total jewelry exports. The US market plays a crucial role in India's exports of cut and polished diamonds, gold jewellery, and lab-grown diamonds. Recently, Titan has expanded its presence in the international market. In Q3, the company reported revenue of ?569 crores, reflecting a 64% year-on-year growth."

Om Mehra, Technical Research Analyst, SAMCO Securities said, "Titan was hovering near its 52-week low, and today’s recovery marks an important development. The stock bounced back strongly, ending the session at Rs 3,098.45, up 3.73%, after taking support following a double bottom formation, indicating a potential base-building pattern. Additionally, the stock has formed a Piercing Line candlestick pattern, a classic bullish reversal signal, especially when appearing after a sustained downtrend. Titan has also managed to reclaim the 20-day Simple Moving Average (SMA), adding strength to the reversal attempt. A follow-through move above Rs 3,140 could confirm this bottoming pattern and potentially trigger a rally toward the upper end of the falling channel. The RSI stands at the 48 level and has also shown a bullish divergence, where the indicator made higher lows while the price made lower lows. Volume remains moderate but supports the credibility of the current bounce. With heavyweights like Titan showing signs of bottoming out near key support zones, this may be an opportune time to gradually accumulate quality Nifty and Sensex constituent stocks for the medium to long term."

AR Ramachandran, SEBI registered Independent analyst says, "Titan is bullish on the Daily charts with strong support at  Rs 2971. A Daily close above resistance of Rs 3111 could  lead to a target of Rs 3297 in the near term."
 
Goldman Sachs has a buy call on Titan with a target price of Rs 3,900. It has included Titan to its Asia-Pacific conviction list. The brokerage said Titan has taken a one-time reset of margins to improve its price competitiveness. 

Mirae Asset Sharekhan has a price target of Rs 4,067 on the Titan stock. It has a buy call on the stock. 

"Sustained growth in the jewellery business coupled with scaling up and improving profitability of other businesses will drive medium to long-term growth. Stock trades at 80x/61x/51x its FY25E/FY26E/FY27E earnings, respectively. We maintain a Buy with a revised price target of Rs 4,067," said Sharekhan.