Shares of Titan Ltd rose on the BSE in Monday’s opening offers after the jewelry and watches maker reported a multi-fold enhance in consolidated web revenue at ₹790 crore within the first quarter ended June on the again of robust festive demand. The corporate had posted a consolidated web revenue of ₹18 crore within the year-ago interval.
The corporate’s onsolidated complete earnings throughout the quarter underneath evaluation stood at ₹9,487 crore as in opposition to ₹3,519 crore in the identical interval final fiscal.
“Titan has a robust runway for development, given its market share of sub-10% in Jewellery and continued struggles confronted by its unorganized and arranged friends. Its medium-to-long-term earnings development visibility is nonpareil,” stated home brokerage and analysis agency Motilal Oswal.
Regardless of the volatility in gold costs and COVID-led disruptions, earnings CAGR has been stellar at 24% for the previous five-years ending FY22. The brokerage expects this development to proceed, with a 26% earnings CAGR over the subsequent couple of years.
“The inventory’s near-term multiples seem costly, however its lengthy runway for worthwhile development warrants premium multiples. We keep our Purchase score on Titan shares with a goal value of ₹2,670 per share,” it added.
“Titan gives high-teens development visibility and an bettering RoIC profile (~45% by FY25E), led by low penetration and give attention to bettering product assortment + profitability turnaround in eyewear/Caratlane companies. A quicker traction in Taneira, purses, and worldwide operations stays a possible upside. We keep Purchase with a revised goal value of ₹2,700 ( ₹2,530 earlier),” stated one other brokerage Emkay.
As per the current shareholding sample on the BSE, investor Rakesh Jhunjhunwala and his spouse Rekha Jhunjhunwala maintain 3.98% stake and 1.07% stake within the Tata Group firm as of June 2022.
“The monetary yr has begun properly for us and we delivered a robust efficiency in Q1 throughout our enterprise segments. Regardless of the difficult macro atmosphere, the outlook for the remaining quarters appears to be like optimistic and we proceed to execute our funding plans in India in addition to chosen worldwide geographies,” Titan Ltd Managing Director CK Venkataraman stated.
The views and suggestions made above are these of particular person analysts or broking firms, and never of Mint.
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Supply: Live Mint