Titan rises after net sales increase by 171.9%, according to the Rakesh Jhunjhunwala Portfolio. Must

Titan rises after net sales increase by 171.9%, according to the Rakesh Jhunjhunwala Portfolio. Must

Titan Shares Today: The jewelry industry’s EBIT (profits before interest and taxes) increased 396 percent to Rs 1,027 crore from the previous year. Sales-wise, the watch, and wearables industry had its greatest quarter ever. The company’s revenue increased by 169% year over year to Rs 785 crore. The eyecare industry’s revenue climbed 173% year over year to Rs 183 crore, and its EBIT came in at Rs 36 crore in the second quarter.

Rakesh Jhunjhunwala Share Holding

According to Trendline, the renowned investor and his wife Rekha Jhunjhunwala control more than 5% of Titan Company, which was valued at 10,911.30 crores.

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The primary highlight of Titan’s performance, according to analysts at Edelweiss, was a margin in the Jewellery section that surpassed estimates by 13%. “We are increasing FY23E EPS by 4% while accounting for the margin outperformance. We value Titan at 80 times 9MFY24E EPS (76 times FY24E)—a premium to its five-year average of 60 times—and this reflects its growth trajectory and potential scale-up in other verticals, such as watches and wearables and Caratlane, the report stated while offering a target price of Rs 3,119.

Global brokerage Emkay revealed that Titan exceeded its Ebitda forecast by 8%. “Excluding sales of physical commodities, the consolidated Ebitda margin at 13.2% was 200 basis points higher than pre-Covid levels, driven by operating leverage, the exit from loss-making ventures, and an 80 basis point one-off, “It read.

“We increase EPS for FY24/25 by 3–4%, driven by a strong Q1 and positive commentary. Titan provides visibility for high-teen growth and a rising RoIC profile (45 percent by FY25E). Due to a 3-month rollover, we are maintaining our Buy recommendation with a target price of Rs 2,700, down from Rs 2,530 earlier. A potential benefit might come from Taneira and international operations gaining more traction “added Emkay.

New launches in Taneira, wearables, and Fastrack Prescription Eyewear, according to brokerage company Prabhudas Lillader, have the potential to become new growth drivers for Titan. Analysts believe that the company is well-positioned to take advantage of long-term growth opportunities, which will be driven by crores share gains as a result of network expansion, regional thrust, and hallmarking benefits; an Omni-channel strategy across percentjewelryjewelry, watches, and eyewear; new growth drivers like Caratlane, Titan Eye+, and Taneira; and entry into high-growth segments like wearables like smartwatches, over-the-head headphones, and Truly Wireless earphones.

Given the structural story of market share growth, a healthy financial sheet, a franchisee-based business model, and a strong brand, the brokerage projects a 33.82 percent PAT CAGR over the FY22–24 period and maintains a favorable outlook. It keeps the stock’s rating at “Accumulate,” with a DCF-based target price of Rs 2,607.

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