The brokerage also likes its portfolio approach to target multiple categories and customers. Post recent correction in the stock price, ICICI Securities has upgraded Titan shares' rating to Buy from Add with a target price of ₹2,092 apiece.
Titan remains Motilal Oswal's top stock pick in the largecap consumption space in India, with strong earnings growth visibility and compounding around 20% for an elongated period of time.
In the Jewelry industry, which is organizing at a rapid space, Titan is clearly at the vanguard among organized players in leading this growth. Its runway for growth is long, with a market share of just ~6%. Unlike other high growth categories, the competitive intensity from organized and unorganized peers in Jewelry is considerably weaker. Expensive valuations in the near term will get burnt off by a rapid pace of growth," the brokerage stated.
Motilal Oswal has maintained its Buy rating on the Tata Group stock with a target price of ₹2,900, implying a potential upside of nearly 39% from the current stock level.
“Titan almost met its earlier 5-year revenue guidance (achieved revenue /EPS Cagr of 16/22% over FY17-22), which ensures credibility of the mgmt on the guided path. We maintain Titan as high conviction BUY within consumer discretionary space with target price of ₹2,750," said PhillipCapital.
According to BSE shareholding pattern, Indian ace investor Rakesh Jhunjhunwala holds 3.98% stake in Titan whereas his wife Rekha Jhunjhunwala has 1.07% equity in the company as of March 31, 2022.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
