In response to an encouraging ‘buy’ rating from Motilal Oswal analysts, Titan’s share price experienced a modest uptick, reaching Rs 3,760 per share. This uptrend reflected the positive sentiment among investors following the endorsement from analysts, who highlighted Titan’s promising growth prospects. Motilal Oswal analysts set an ambitious target price of Rs 4,300, implying a potential 14% increase from the current level, further fueling investor confidence in Titan’s future performance.
However, despite the initial gains, Titan’s stock later retreated, experiencing a slight decline of 0.2% by 09:35 am. This minor downturn underscores the volatility in the market and the fluctuating nature of stock movements.
Interestingly, on January 30, 2024, Titan’s shares reached a 52-week high of Rs 3,885 per share, demonstrating the market’s reaction to various factors, including analyst ratings and broader market dynamics.
Analysts at Motilal Oswal expressed optimism about Titan’s prospects, citing its outstanding track record and proactive approach to expanding its customer base. Their bullish stance on the stock is driven by Titan’s commitment to growth and its reputation as a leader in the industry.
Motilal Oswal analysts emphasized Titan’s strong long-term growth potential, particularly in its jewellery and other businesses. With Titan currently commanding an 8 percent market share in the jewellery segment, analysts believe there is ample room for further expansion. They anticipate that consumer preference for branded jewellers will continue to drive robust growth in this category.
Furthermore, the brokerage firm highlighted the potential for margin improvement, attributing it to the gradual recovery in studded ratio—a key performance metric in the jewellery industry. This positive outlook underscores Motilal Oswal’s confidence in Titan’s ability to capitalize on market opportunities and sustain its growth trajectory in the long run.
Titan’s management remains bullish on sustaining its jewellery EBIT margin of 12-13 percent despite intensifying competition. Over the long term, the company is confident in maintaining robust growth, driven by several key factors including the burgeoning urban population, an expanding consumer base, and a notable shift in consumer preferences towards organized players from the unorganized sector.
Analysts at Motilal Oswal echoed this sentiment, projecting impressive growth figures for Titan in the upcoming years. They anticipate a compounded annual growth rate (CAGR) of 17 percent in revenue, 23 percent in EBITDA, and 26 percent in profit after tax (PAT) for the period spanning FY24 to FY26. Despite acknowledging that Titan’s valuation might appear steep, they emphasized the company’s superior competitive positioning and formidable business moats, which they believe are difficult to replicate.
Overall, Titan’s optimistic outlook, coupled with the endorsement from analysts at Motilal Oswal, underscores the company’s strong prospects for sustained growth and continued success in the jewelry industry.
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