Shares of Titan Company achieved yet another milestone on Tuesday by crossing the ₹3-lakh crore market capitalisation for the first time. After hitting an all-time high of ₹3,400 on Tuesday, the stock closed at ₹3,394.15, higher by 1.44 per cent over the previous day’s close.

At the end of the day, Titan’s market capitalisation stood at ₹3.01-lakh crore. With today’s gains, Titan shares ranked 17th in terms market-capitalisation displacing Asian Paints from the slot.

Titan is always a consistent return player, said analysts. In a recent research study, ICICI Securities said that Titan stock has given 40 per cent CAGR over the 20-year period and its earnings zoomed 30 per cent CAGR during the period.

Titan was one of the star picks by ace investor Rakesh Jhunjhunwala. Rekha Rakesh Jhunjhunwala still holds 5.37 per cent stake in the company.

Maintains guidance

Kunal Vora, Head - India Equity Research, BNP Paribas, in a latest report said Titan continues to deliver close to its long-term guidance of about 20 per cent sales CAGR in its jewellery division, even amid weak growth in most consumption categories. “We think Titan is uniquely positioned for market-share gains, with large growth headroom, and it is a part of our Affluent India stock list. Titan has not yet seen any impact of lab-made diamonds on jewellery sales in India,” BNP Paribas said. It, however, set the target price as ₹3,650.

Titan maintained its guidance of 12-13 per cent margins in jewellery business, with no material impact of correction in the diamond prices on studded jewellery profitability, said Sharekhan. Key positives, according to the domestic brokerage are: Tanishq’s like-for-like growth stood strong at 22 per cent in Q2; watches business grew by 32 per cent y-o-y with a 22 per cent y-o-y growth in analog watches driven by double-digit growth in average selling price; emerging businesses grew by 28 per cent y-o-y, Taneira’s saw a strong growth of 64 per cent y-o-y; and Caratlane revenues grew by 45 per cent y-o-y to ₹650 crore.

However, jewellery and eyecare margins were down by 125 bps and 187 bps y-o-y respectively in Q2 and TEAL’s revenues stood flat at ₹125 crore are key negatives, it added. Sharekhan set a target price of ₹3,740.

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