Titan Company share cost gained as considerably as 1.5 per cent to Rs 1,784.25 apiece, also a fresh record higher in intraday on BSE. Rakesh Jhunjhunwala’s preferred stock surpassed the prior higher of Rs 1,770.35 apiece, touched yesterday. With ease in lockdown in quite a few states, enhancing vaccination price and expectedly superior development in the jewelry segment in the coming 2-3 years has fueled Titan to an all-time higher, analysts stated. In significantly less than a span of one year, Titan stock has zoomed 91 per cent from its 52-week low of Rs 935.20. While it has soared 12 per cent so far this month. Besides, the government has also made the hallmarking of gold jewellery mandatory from June 15, 2021, beneath which jewellers will be capable to sell hallmark certified 14 or 18 or 22 carats of gold jewellery.
The share costs of Titan have been rallying because the starting of June immediately after the stock gave a decisive breakout above its resistance level. The stock gained focus immediately after the government granted relief to jewellers in wake of the Covid-19 resurge and extended the deadline for hallmarking gold jewellery to June 15, 2021. “With expectations of stronger recovery on the back of pent up demand the outlook for this stock appears to be optimistic,” Likhita Chepa, Senior Research Analyst, CapitalBy means of Global Research, told TheSpuzz Online. She also stated that the company’s ongoing initiatives to include expense and boost market place share are anticipated to outcome in superior margins and assistance wholesome efficiency in the future,
In traded volume terms, 2.70 lakh Titan shares have traded on BSE, when a total of 8.21 lakh shares have exchanged hands on NSE, so far in the trade. Analysts at Edelweiss have provided a ‘buy’ rating to the stock, with a target cost of Rs 1,890, implying an upside of practically 6 per cent from present levels. The investigation firm continues to stay positive on Titan for the extended term owing to robust brand portfolio across segments steady shop expansion with focus on expansion in tierII/III markets and the demand tailwind from a structural shift towards organised retail.
Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala, collectively held 4.49 crore shares in Titan Company at the finish of the March 2021 quarter. “The stock has scaled an all-time high after a breakout from his multiple highs of 1620 levels. Partial unlocking in various states has also improved sentiments for the retail sector. We expect the stock to move higher for a target of 1,800 over the next few weeks,” Vikas Jain, Senior Research Analyst at Reliance Securities, told TheSpuzz Online.
Technically, investors ought to book some income now as the stock has entered the overbought zone, stated AR Ramachandran, Co-founder & Trainer, Tips2Trades. “1620-1660 levels should be a good support zone where new investors can re-enter,” he told TheSpuzz Online. HSBC Securities, last month in a note, stated that the mandatory hallmarking will shape the pricing behaviour of trade, trigger consolidation and minimize the artificial gap in pricing amongst jewellers, generating the worth proposition of organised jewellers such as Titan more attractive. “Market share gain journey for Titan will accelerate: Titan’s key structural appeal is the consistent market share gain opportunity from the unorganised trade (still nearly 70% of the market),” it added.
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