Titan Company Limited’s share price tag has practically doubled from its March lows throughout the existing bull run. Currently trading at Rs 1,522 per share, the stock has zoomed from as low as Rs 720 apiece in March this year. Titan Managing Director C K Venkataraman, in a current discussion with brokerage and study firm Motilal Oswal, stated that the outlook for the firm is obtaining even far better just after Titan reported a 15% on-year development in the festive season. In the longer run, Titan has eyes set on gaining market place share post the coronavirus led disruption.
Eyes set on gaining market place share
The pandemic produced operational complexities on the balance sheet for unorganized and other organized players, this has strengthened the case for Titan gaining market place share which at the moment sits at 10% of the Indian jewellery market place. The firm could be seeing an improve in its foothold across the nation with inquiries for new franchises getting robust in the existing year. Similar to other listed and unlisted firms of India Inc, Titan as well commenced price saving measures. The management believes some of these savings are sustainable. Savings have been noticed in all locations, from sales-associated savings to material charges.
Overall, there is nonetheless area for improvement for Titan in terms of customer demand recovery. Although Titan Company has enhanced its market place share, the management believes there is area for improvement. “Titan wants to make the international business more meaningful over the next five years, with contribution targeted at the mid-single digits as a proportion of sales,” the report noted.
Analysts bullish
“Titan’s medium-to long-term earnings growth opportunity is best-of-breed, reflected in the ~24% EPS CAGR over the past three years,” the brokerage firm stated. It believes that the firm has a robust runway for development offered its market place share of much less than 10% and the continuing struggles of unorganized and other organized peers. With a target price tag of Rs 1,650, Motilal Oswal has a ‘Buy’ rating on the scrip. The current announcement by Titan of scaling down operations of Favre Leuba substantially is also getting noticed as a good move. Brokerage firm Emkay Global stated the move would outcome in trimming losses.
Big Bulls enormous earnings
Titan is frequently touted as the Big Bull Rakesh Jhunjhunwala’s favourite stock. Along with his wife, Rekha Jhunjhunwala, the massive bull owns more than 4.9 crore equity shares of the firm translating to a 5.5% stake in the Tata group firm. Although the billionaire investor has trimmed his stake in the firm this year, he nonetheless has managed to make a profit of around Rs 605 crore from Titan in 2020.