Titan share price: Buy Titan Company, target price Rs 2900: Motilal Oswal

has buy call on Titan Company with a target price of Rs 2900. The current market price of is Rs 2134.45. Time period given by analyst is one year when . price can reach defined target.

Titan Company Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 185698.23 Crore) operating in Gems and Jewellery sector.

Titan Company Ltd. key Products/Revenue Segments include Jewellery, Watches, Gold, Eyewear, Traded Goods, Precious & Semi Precious Stones, Other Operating Revenue, Other Services for the year ending 31-Mar-2021.

Financials

For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 7872.00 Crore, down -22.01 % from last quarter Total Income of Rs 10094.00 Crore and up 4.25 % from last year same quarter Total Income of Rs 7551.00 Crore. Company reported net profit after tax of Rs 527.00 Crore in latest quarter.

Investment Rationale
Titan remains top pick in the largecap Consumption space in India, with strong earnings growth visibility and compounding ~20% for an elongated period of time. In the Jewelry industry, which is organizing at a rapid space, TTAN 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. It maintains Buy rating.

Promoter/FII Holdings
Promoters held 52.9 per cent stake in the company as of 31-Mar-2022, while FIIs owned 18.4 per cent, DIIs 10.21 per cent.