Holi 2024: Here’s why Titan Company is Sumeet Bagadia’s top Holi pick
Titan Company, favored by Sumeet Bagadia, is advised for purchase at ₹3625 with a target range of ₹3,900 to ₹4,035. Technical indicators suggest a bullish trend with support levels at ₹3,360 and ₹3,400 and resistance at ₹3,750.
Sumeet Bagadia, Executive Director of Choice Broking has chosen Titan Company as his Holi pick. Bagadia recommends buying the stock at ₹3625 and adding up to ₹3,575 for the target price of ₹3,900 and ₹4,035, implying a potential upside of up to 11 per cent in the stock based on Titan's previous day close of ₹3,628.95 on the BSE.
Bagadia observed that Titan has recently consolidated at the bottom with good volume, indicating a potential reversal and a strong bullish trend.
"A breakout above ₹3,650 could propel the stock towards the ₹3,900 level, with immediate resistance at ₹3,750. Conversely, ₹3,360 and ₹3,400 serve as crucial support levels," Bagadia said.
After a prolonged correction, the stock has reversed from the support level.
The Relative Strength Index (RSI) is currently at 46, on an upward trajectory, suggesting growing buying momentum. Overall, technical indicators imply that Titan has the potential to reach the ₹3,900 target in the near term, Bagadia said.
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He believes investors should consider buying this stock on dips at levels around ₹3,575.
"Based on technical analysis and prevailing market conditions, Titan appears to present a promising buying opportunity for those targeting a ₹3,900 price objective. It is crucial to implement prudent risk management strategies to navigate potential market fluctuations," said Bagadia.
Titan share price trend
Titan share price has gained about 44 per cent in the last one year, outperforming the equity benchmark Sensex which has gained about 25 per cent in the same period.
The stock hit its 52-week high of ₹3,885 on BSE on January 30 this year and as of March 21, it is down almost 7 per cent from its 52-week high level in a span of nearly two months.
The stock's trailing 12-month PE ratio of 95 is high in the industry, according to an equity research portal Trendlyne.
But the company has strong financials. The company's total assets in the last financial year stood at about ₹25,088 crore, up from ₹20,137 crore in the previous financial year, as per Trendlyne data.
It reported a net profit of ₹1,040 crore for the third quarter of FY24 in February, up 9.4 per cent from ₹951 crore in the same period last year.
The company’s revenue from operations in Q3FY24 increased 20 per cent to ₹13,052 crore from ₹10,875 crore year-on-year.
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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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