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Shares of Titan rose 4 per cent on Wednesday, extending their gains for the second consecutive session amid heavy volumes. The stock gained 3.68 per cent to hit a day high of Rs 2,595.90 over its previous close of Rs 2,503.65. It eventually settled at 3.10 per cent higher at Rs 2,581.20 today. The scrip emerged as the biggest index contributor for the domestic benchmarks. On NSE, it climbed 3.69 per cent to hit a day high of Rs 2,596 against yesterday’s closing of Rs 2,503.55.
A total of 1.03 lakh shares changed hands today, which was more than double the two-week average of 37,000. The turnover on the counter stood at Rs 26.44 crore. The company commanded a market capitalisation (m-cap) of Rs 2,28,356.36 crore.
A healthy growth in the first half of the ongoing financial year (FY23), international expansion and hopes that inventory days will return to FY20 levels by FY24 could be the fresh triggers for the stock. Technical charts hinted that support on the counter is seen at Rs 2,450.
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Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “Titan has seen a strong spurt from its 200-SMA (Simple Moving Average), backed by notable volumes on the daily chart, signifying positive development on the counter. On a technical aspect, the stock has witnessed a positive crossover on the 14-day RSI from the oversold region, adding to the bullish quotient. As far as levels are concerned, Rs 2,520-2,510 is likely to provide a cushion to any fall, while the strong support lies around Rs 2,450. On the higher end, the stock could re-test the Rs 2,650-2,670 zone in a comparable period.”
A R Ramachandran from Tips2trades said, “Titan now faces strong resistance at Rs 2,588. A daily close above this level can be used by investors to buy for targets of Rs 2,665-2,772 in the coming weeks.” The support on the counter is seen at around Rs 2,450, Ramachandran added.
Brokerage Motilal Oswal has assigned a ‘buy’ call on the counter with a target price of Rs 2,910, suggesting a potential upside of 16 per cent against yesterday’s closing of Rs 2,503.65.
“The jewelery business posted a healthy growth in H1 FY23. We remain confident that Titan will deliver on its 2.5x growth target in this segment over the next five years,” the brokerage stated. It also mentioned that international e-commerce would also be an important driver of sales.
Motilal noted that inventory days were higher than usual in recent years partly as a result of lost sales in Q1 FY22 and Q1 FY21 due to the Covid-19 pandemic.
Titan has gained 3.83 per cent in the previous five sessions. On a year-to-date basis, the stock has moved 2.15 per cent higher.
Titan posted a 30.2 per cent year-on-year (YoY) jump in consolidated net profit at Rs 835 crore as against Rs 641 crore in the same quarter last year. Consolidated sales for the quarter jumped 18 per cent YoY to Rs 8,567 crore from Rs 7,243 crore in the year-ago period.
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Meanwhile, Indian equity benchmarks were almost flat today as losses in pharma and state-owned lenders countered gains in consumer durables and energy stocks.
(Disclaimer: The opinions expressed in this article are that of the market experts. The facts and opinions expressed here do not reflect the views of Business Today.)
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