Target Rs 2,877
LTP Rs 2,606
Titan Company was established in 1984 as a joint venture between Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO).
The company has come a long way from one product category to over 16 brands across multiple categories in over 2,000 retail stores.
It has attained leading positions in the jewelry, watch and eye care categories, and has also diversified into wearables, Indian apparel, and fragrances and fashion accessories.
Titan is active in India’s jewelry industry under its flagship brand Tanishq, India’s largest jewelry retailer.
In addition, the Company has multiple brands in the jewelry segment to meet different consumer needs, including Zoya, a luxury brand; Mia by Tanishq, which offers contemporary jewelry; and CaratLane, an omnichannel brand for contemporary jewelry at affordable prices.
This segment was the primary growth driver for Titan as it posted a CAGR of 13.8 percent in FY12-22 and contributed 88 percent of the company’s consolidated revenue.
Given that Titan has a 4% market share in the Rs 4 laktah billion market, there is an opportunity to increase this share to a sizeable one in the future.
In addition, Titan has been the biggest beneficiary of the ongoing formalization of the economy. We believe the trend is likely to continue and Titan will continue to outperform the industry due to its strong brand presence, broad distribution network and continued focus on product innovation.
Additionally, its strong financial track record, robust return metrics and strong brand equity make it one of our top picks in the industry.
Turning to the financials, Religare Broking expects Titan’s Revenue/EBITDA/PAT to grow 16.2%/26.8%/32% in FY22-24E respectively. The brokerage firm recommends a ‘buy’ on the stock with a target price of Rs. 2,977.
(Disclaimer: Experts’ recommendations, suggestions, views and opinions are their own. These do not represent the views of Economic Times)
https://economictimes.indiatimes.com/markets/stocks/news/navratri-special-titan-company-a-long-term-buy-for-retail-investors-sees-10-upside/articleshow/94579454.cms titan company share price: Navratri Special: Titan Company a long-term buy for retail investors; sees 10% upside