Titan is the New 2 Trillion Mkt Cap Gem

    Titan, has touched ₹2 trillion market capitalisation with the stock hitting a record high on Thursday. Titan Co. Ltd Shares hit a fresh record high of ₹2343 on the BSE, up 9% from their previous close, while its market capitalisation stood at ₹2.07 trillion.

    On Wednesday, Titan reported a strong recovery in demand in the September quarter and its sales in most of its divisions have either reached above or close to pre-pandemic levels.

    At 9.30am, the scrip was at ₹2327.60, up 8.4%.Tata Consultancy Services is the other Tata company to hit this milestone.

    The jewellery segment reported a 78% YoY growth (excluding bullion sales). It clocked 32% CAGR on a two-year basis. The segment added 13 stores in the second quarter of FY22, taking the total store count to 414.

    Titan is the TATA Groups New 2 Trillion Market Cap Gem, shares hit new high

    TITAN shares touch a new high today – achieves 2 Trillion Market Cap

    The watches and wearables division recovered rapidly, with sales acceleration witnessed across all product brands. The segment reported a 73% year-on-year growth.

    In the eyewear segment, healthy growth was witnessed across all segments, with revenue rising 74% year-on-year. The segment’s sales, which includes its youngest brand Taneira and fragrances and accessories, rose 121% year-on-year.

    TITAN Full unlocking and the upcoming festive/wedding season are likely to further boost revenues in the coming quarters and may offer more upsides.

    Factoring in the strong growth momentum, we increase our FY23/FY24 EPS estimates by 8-12%. Given the solid growth and earnings outlook, we raise our Sep’22 TP to Rs2,530 (from Rs2,000), valuing the stock at 65x Sep’23E EPS (from 55x Sep’23E EPS earlier),” said Emkay Research in a note to its investors.

    Emkay Research said based on the update, it expects Titan to report a solid 64% revenue growth to ₹7100 crore.

    Despite the high plain gold mix, operating margins should reach normalized levels of 11.5%, thanks to strong cost savings seen in Q1 and some operating leverage. The brokerage firm estimated profit after tax of ₹550 crore against ₹200 crore in Q2FY21.

    Motilal Oswal Securities expects the stability in gold prices at ₹47,000 bodes well for consumer demand in the near term. With upbeat consumer sentiment, festival demand is likely to remain robust.


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