Titan Company Ltd shares rose by more than 22% this morning after reporting a 67% rise in Net Profit to Rs 277.93 crore for the quarter ended September 30, 2017 against Rs 165.98 crore in the corresponding quarter last year. Just last month, Rakesh Jhunjhunwala had revealed in an interview to ET Now that Titan is his favourite stock. Rakesh Jhunjhunwala held more than 8.3% stake in Titan Company Ltd, translating to more than 804 lakh shares as at the end of June 2017. In the September quarter, the ace investor has reduced his stake to 8.06%. A Tata enterprise stock, Titan is one of the most prominent stocks in the above Rs 15,000 crore portfolio of the investing icon, and accounts for more than Rs 4,000 crore. Titian Ltd shares hit an intraday high of Rs 824.65 on NSE this morning, up by more than 23% since its previous close on Friday.
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Morgan Stanley has a target price of Rs 920 per share, implying an upside of more than 15% from the current market prices. Consolidated total income of the company increased 29.56 per cent on year-on-year basis to Rs 3,517.70 crore during the quarter under review. It had posted total income of Rs 2,714.98 crore in the same quarter last year. Morgan Stanley says that the Q2 margin expansion is likely to be sustained.
Jewellery segment, which contributed to nearly 80 percent of total revenue, has registered a solid 37 percent growth at Rs 2,748.20 crore on year-on-year basis, with its EBIT (earnings before interest and tax) growing 66.4 percent YoY. “Jewellery business was impacted by the new PMLA regulations at the beginning of the quarter but the roll back, just before the festive season provided a boost to the business,” Bhaskar Bhat, Managing Director of Titan Company Ltd said on Friday. Notably, Titan shares have more than doubled since January, as compared to BSE Sensex returns of 27% in the year so far.