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Titan m-cap swells by Rs 12,000 crore as shares rally 7% on Q1 business update

NEW DELHI: Seasoned investor Rakesh Jhunjhunwala on Thursday made over Rs 600 crore in intraday gains on notionally, as a business update by the Tata group company, his biggest stock bet, received thumbs up from analysts and Dalal Street investors.

Within a few minutes into trading, shares of

were trading 6.86 per cent higher at Rs 2,151.60 a piece. The company commanded an m-cap of just over Rs 1.91 lakh crore compared with an m-cap of Rs 1.79 lakh crore in the previous session.

Jhunjhunwala and his better half Rekha Jhunjhunwala owned a 5.05 per cent stake in Titan as of March 31, 2022. The June quarter shareholding data is yet to be out. This 5.05 per cent Big Bull stake was valued at Rs 9,646 crore as of today compared with Rs 9,026 crore on Wednesday, up Rs 620 crore.

Titan said its jewellery segment posted revenue growth of 207 per cent YoY (excluding bullion sales) on a low base, led by strong demand due to Akshaya Tritiya in May. Titan added a total of 19 new stores: six Tanishq stores, 12 Mia stores in India, and a new Tanishq store in Dubai.

The watch division recorded a growth of 158 per cent YoY, led by growth across brands and products. The eyewear division posted a sales growth of 176 per cent YoY, led by Titan Eye Plus and trade and distribution channels.

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Titan’s Q1FY23 business update suggests a robust 3-year consolidated revenue CAGR of 22 per cent, said .

“In our view, a strong Q1 should drive an upgrade to consensus estimates. However, we do not see material changes to our estimates given near-term volatilities due to a recent customs duty increase and higher inflation. We currently have a ‘Buy’ rating on Titan with a target of Rs 2,530,” Emkay Global said.
said Titan remained its top pick in the largecap consumption space, with strong earnings growth visibility and compounding by 20 per cent for an elongated period of time.

“In the jewellery industry, which is organising at a rapid pace, Titan is clearly at the vanguard among organised players in leading this growth,” Motilal Oswal said.

“Its runway for growth is long, with a market share of 6 per cent. Unlike other high-growth categories, the competitive intensity from organized and unorganized peers in jewellery is considerably weaker.”

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

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