Titan share price hits fresh 52-week high yet again, Motilal Oswal sees more upside

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The share price of Titan Company hit a record high of Rs 1,523 in the morning trade on BSE on December 18. The stock has been on a roll and has been hitting new highs for several sessions in a row.

As of December 17 close, the stock had gained 26 percent in the calendar year 2020 against a 14 percent rise in the benchmark Sensex.

Brokerage firm Motilal Oswal Financial Services sees more upside and has a "buy" call on the stock with a target price of Rs 1,650.

"Titan's medium-to-long-term earnings growth opportunity is best-of-breed, reflected in the about 24 percent EPS CAGR over the past three years," said Motilal.

The Tata group company has a strong runway for growth, given its market share of less than 10 percent and the continuing struggles of unorganised and other organised peers, the brokerage said.

The company is aggressively focussing on cost-saving and driving technology, both in selling and on loyalty programmes.

After reporting 15 percent growth in the festival season against the comparable period last year, wedding demand is also healthy, Motilal said.

The demand is being boosted by the dearth of other discretionary consumption opportunities, especially those related to travel and tourism.

Investment demand is also healthy as people prefer to park their money in tangible and relatively safe assets in times of crisis.