Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Livemint
Livemint
Business
Livemint

Rakesh Jhunjhunwala portfolio Tata Group stock rises after strong Q1 results. Should you buy?

istock

The company's onsolidated total income during the quarter under review stood at 9,487 crore as against 3,519 crore in the same period last fiscal.

“Titan has a strong runway for growth, given its market share of sub-10% in Jewelry and continued struggles faced by its unorganized and organized peers. Its medium-to-long-term earnings growth visibility is nonpareil," said domestic brokerage and research firm Motilal Oswal.

Despite the volatility in gold prices and COVID-led disruptions, earnings CAGR has been stellar at 24% for the past five-years ending FY22. The brokerage expects this trend to continue, with a 26% earnings CAGR over the next couple of years.

“The stock’s near-term multiples appear expensive, but its long runway for profitable growth warrants premium multiples. We maintain our Buy rating on Titan shares with a target price of 2,670 per share," it added.

“Titan offers high-teens growth visibility and an improving RoIC profile (~45% by FY25E), led by low penetration and focus on improving product assortment + profitability turnaround in eyewear/Caratlane businesses. A faster traction in Taneira, handbags, and international operations remains a potential upside. We maintain Buy with a revised target price of 2,700 ( 2,530 earlier)," said another brokerage Emkay.

As per the recent shareholding pattern on the BSE, investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala hold 3.98% stake and 1.07% stake in the Tata Group company as of June 2022.

"The financial year has begun well for us and we delivered a strong performance in Q1 across our business segments. Despite the challenging macro environment, the outlook for the remaining quarters looks positive and we continue to execute our investment plans in India as well as chosen international geographies," Titan Ltd Managing Director CK Venkataraman said.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.