Macquarie sees Titan Company stock at Rs 3,000 in a year, here's why

Shares of Titan Company rose nearly 2 per cent today as brokerage Macquarie assigned a 55 per cent upside for the luxury goods maker in a year. The stock, which forms a key component of ace investor Rakesh Jhunjhunwala's portfolio, climbed 1.97 per cent to an intraday high of Rs 1,973.55 on the BSE.

Jhunjhunwala and his wife Rekha jointly held 4,48,50,970 shares, or 5.05 per cent stake, in the company at the end of March quarter. In the last quarter, Rakesh Jhunjhunwala held 3.53 crore shares, or 3.98 per cent stake, in the firm. His wife Rekha owned 95.40 lakh shares, or 1.07 per cent stake in the firm.

The stock hit an all-time high of Rs 2,767.55 hit on March 21 this year. It touched a 52-week low of Rs 1,661 on July 20, 2021.

The large cap stock has gained after 2 days of consecutive fall. Titan Company stock stands lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages.

The large cap share has climbed 15.17 per cent in a year but lost 22.03 per cent since the beginning of this year.  The stock has declined 8 per cent in a month. Later, the stock ended 1.53 per cent higher at Rs 1,965 on BSE.

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A total of 0.55 lakh shares of the firm changed hands, amounting to a turnover of Rs 10.74 crore. The market cap of the firm rose to Rs 1.74 lakh crore on the BSE.

Macquarie has assigned an outperform rating to the stock with a target price of Rs 3,000, 55 per cent higher than the last close of Rs 1935.3.

"Channel checks suggest demand trends remain healthy as premium end consumers remain relatively resilient to inflationary headwinds," the brokerage said.

"The stock trades close to its 5-yr average PE ratio despite demand strength and visibility on medium-term growth," it added.

On the other hand, Credit Suisse has maintained a neutral view on Titan Company. It has assigned a target price of Rs 2,600, an upside of 23 per cent to June 14 close.

The company reported a 7.21 per cent decline in its consolidated net profit at Rs 527 crore in the fourth quarter ended March 2022. It had posted a net profit of Rs 568 crore in the January-March quarter of FY21.

Total income rose 4.25 per cent to Rs 7,872 crore in Q4 as against Rs 7,551 crore in the corresponding period of the preceding fiscal. Revenue from sales of products was down 1.14 per cent to Rs 7,267 crore in the fourth quarter of FY22 as against Rs 7,351 crore a year ago.