Titan becomes second Tata group firm to hit ₹2 trillion market capitalisation

Titan becomes second Tata group firm to hit ₹2 trillion market capitalisation

Titan Co Ltd on Thursday became the second Tata group firm to touch ₹2 trillion market capitalisation with the stock hitting a record high.

Titan shares hit a new record high of ₹2343 on the BSE, up 9% from their past close, while its market capitalisation remained at ₹2.07 trillion. At 9.30am, the scirp was at ₹2327.60, up 8.4%.

Tata Consultancy Services is the other Tata organization to hit this achievement.

On Wednesday, Titan detailed a strong recuperation in demand in the September quarter and its sales in the greater part of its divisions have either reached above or near pre-pandemic levels.

The jewellery segment revealed a 78% YoY growth (excluding bullion sales). It clocked 32% CAGR on a two-year basis. The section added 13 stores in the second quarter of FY22, taking the complete store build up to 414. The watches and wearables division recuperated quickly, with deals speed increase saw across all item marks. The fragment detailed a 73% year-on-year development.

In the eyewear section, solid development was seen across all portions, with income rising 74% year-on-year. The segment’s sales, which incorporates its most youngest brand Taneira and fragrances and accessories, rose 121% year-on-year.

“Full unlocking and the upcoming festive/wedding season are likely to further boost revenues in the coming quarters and may offer more upsides, in our view. Factoring in the strong growth momentum, we increase our FY23/FY24 EPS estimates by 8-12%. Given the solid growth and earnings outlook, we raise our Sep’22 TP to Rs2,530 (from Rs2,000), valuing the stock at 65x Sep’23E EPS (from 55x Sep’23E EPS earlier),” said Emkay Research in a note to its investors.

Emkay Research said dependent on the update, it anticipates that Titan should report a strong 64% revenue growth to ₹7100 crore. Notwithstanding the high plain gold mix, operating margins should arrive at normalized levels of 11.5%, on account of strong cost savings seen in Q1 and some operating leverage. The brokerage firm estimated profit after tax of ₹550 crore against ₹200 crore in Q2FY21.

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