Titan becomes second Tata group company to achieve 2 tonne market cap

Stock hits latest record high ₹2343 on the BSE, up 9% from the previous close, while its market cap remained ₹2.07 trillion. At 9.30 am, was trading on scirp ₹2327.60, up 8.4%.

Tata Consultancy Services is the second Tata company to achieve this feat.

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

The jewelery segment registered 78 per cent year-on-year growth (excluding bullion sales). It witnessed a CAGR of 32% on a two-year basis. The segment added 13 stores in the second quarter of FY12, taking the total number of stores to 414. With sales booming across all product brands, the watches and wearables division quickly recovered. This segment has registered a year-on-year growth of 73 per cent.

In the eyewear segment, all segments saw healthy growth, with revenues growing 74% year-on-year. Sales of the segment, which includes its youngest brand Tanira and fragrances and accessories, grew 121% year-over-year.

“Complete unlocking and the upcoming festive/wedding season are likely to drive further growth in revenue in the coming quarters and may offer more buoyancy in our view. Taking into account the strong growth momentum, we increase our FY23/FY24 EPS estimates by 8-12%. Given a solid growth and earnings outlook, we are raising our Sep’22 TP to Rs 2,530 (from Rs 2,000), valuing the stock at 65x Sep’23E EPS (from earlier 55x Sep’23E EPS), ‘ said MK Research. A note to your investors.

Emkay Research said based on the update, it expects Titan to report solid 64% revenue growth ₹7100 crores. Despite the higher plain gold mix, operating margin should reach a modest level of 11.5%, driven by the strong cost savings seen in Q1 and some operating leverage. Brokerage firm estimates profit after tax of ₹550 crore against ₹200 crores in Q2FY21.

Motilal Oswal Securities expects stability in gold prices ₹47,000 signals good for consumer demand in the near future. Festive demand is likely to remain strong, coupled with buoyant consumer sentiment.