Religare sees a 24% upside in this Rekha Jhunjhunwala stock
Viewing a healthy consumer demand in the jewellery segment, domestic brokerage house Religare Broking kept a bullish stance on Titan, a Rekha Jhunjhunwala-owned stock. Religare has indicated an upside of 24% in this consumer goods stock and has initiated a buy call with a target price of ₹2,997 per share. The current market price of the stock stood at ₹2,380 a piece on March 1.
“We estimate its revenue/EBITDA/PAT to grow at a CAGR of 20.4%/28.6%/30.3% over FY22-25 . We maintain Buy with a target price of ₹2,977,” said the brokerage firm expecting Titan to maintain a strong foothold in the jewellery segment.
With decades of trust in the market on Titan among Indian consumers, its entry into other segments like eyecare, fragrance, fashion accessories, etc. can work in favour of the company’s revenue generation. The company further diversified its operation in segments like wearables, Indian dress, fragrances, etc. The brokerage firm is optimistic that the firm will continue to get the benefit of good traction in domestic and international markets of the jewellery segment. The company’s strong foothold in the Jewellery and wrist watches category is also accentuated by its high penetration in rural areas as well as in international markets.
Titan’s Q3 performance
Titan showed a mixed performance in the October-December quarter of FY 2022-23. Its revenue rose by 15.7% YoY and gross profit swelled by 9.2% yoy in the wake of strong demand due to the festive season. The company’s EBITDA margins declined by 6.6% yoy and 276 bps YoY amid lower operational leverage, and high promotional and input cost expenses.
Rise in Rekha Jhunjhunwala’s net worth
According to the shareholding data released by the Titan Company in its October-December 2022 quarterly report, Rekha Jhunjhunwala holds 4,58,95,970 Titan shares, which is 5.17 per cent of total paid up capital of Titan Company Ltd. The current price of the Titan share is ₹2387 on BSE on Wednesday. Notably, Rekha Jhunjhunwala’s wealth increased by ₹1,000 crore after Titan’s stock price jumped from ₹2,310 to ₹2,535 post Union Budget 2023 . Shares of Titan company saw an uptrend after the Budget announcement, becoming a major attraction of stock investors in February. Taiwan banned TikTok in the wake of
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