Rakesh Jhunjhunwala portfolio: Analysts bullish on this Tata group stock after Q3 business update
1 min read . Updated: 07 Jan 2022, 12:14 PM IST
Premium- Motilal Oswal maintains Buy rating on Tata group stock as the structural investment case remains extremely strong
Shares of Titan surged in Friday's early deals after the Tata Group firm released its pre-quarterly update for Q3FY22 in which it registered 36% growth over the festive quarter last year as the company witnessed strong demand across its consumer businesses.
Analysts at Motilal Oswal said that Titan continues to deliver a solid performance, led by strong sales growth in the Jewelry segment. At the same time, other segments like eyewear and watches & wearables are also posting healthy growth.
"This performance is driven by upbeat festive demand, successful regionalization strategy, stable gold prices over the past few months, pent-up demand, and continued tailwinds in favor of organized players," they added.
The structural investment case for Titan remains extremely strong, as per the brokerage house which has maintained its Buy rating on the Tata group stock, with a target price of ₹2,950 per share.
Buoyancy in jewelry demand, driven by festive purchases in October and November , helped the division achieve significant revenue for the quarter. Motilal Oswal expects the company's operating margin to likely improve on a yearly basis in 3QFY22, led by a higher YoY contribution from the Studded Jewelry business. The strong topline growth would also drive EBITDA growth, it added.
"The quarterly update from Titan shows very positive momentum. The company is rapidly adding to store count and continues to grab market share from both unorganized and organized players. With all its categories building good traction, we believe it is a very valuable franchise that will continue to create long term wealth for its shareholders," said Abhay Agarwal, Founder and fund manager at Piper Serica, SEBI Regd. PMS.
Veteran investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala together hold 4.87% stake in Titan as of September 2021, as per the BSE shareholding pattern.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
