We bring to you a blue-chip Rakesh Jhunjhunwala stock that hit an all-time high on Monday to buy and gain up to 16%. The research and brokerage firm Motilal Oswal has raised the target price after the company posted decent retail sales in the fourth-quarter.
Shares of Titan Company Ltd jumped more than 3% to hit an all-time high on Monday after the company said that jewellery retail sales have a decent fourth-quarter. The stock of Titan Company Ltd posted the biggest gain since 28 March 2018 after the research and brokerage firm Motilal Oswal raised the target price after the company said that retail sales growth in mid-teens despite no new collection launch. Shares of Titan Company Ltd advanced as much as 3.16% to a lifetime high of Rs 970 on NSE on Monday.
Notably, the legendary Indian investor Rakesh Jhunjhunwala holds about 6,09,25,645 equity shares of Titan Company accounting nearly 6.86% of the shareholding in the company, as per the data available with stock exchanges as at December 2017. Motilal Oswal has given a ‘buy’ rating with a target price of Rs 1,090 which implies an upside of 15.92% from the current market price of Rs 940.3. According to a Reuters report, Out of 31 brokerages that cover the stock, 23 has rated it “buy” or higher, six “hold” and two “sell” or lower with a median target price of Rs 909.5. Shares of Titan Company Ltd have risen as much as 99.5% to Rs 970 from a share price level of Rs 485 in the last one year.
Shares of Titan Company Ltd were the top 5 gainers among the Nifty 50 components on Monday. “FY 17-18 was a very satisfactory year in terms of overall business performance. The company achieved excellent retail growth in all businesses. Watches and jewellery business scaled new heights in terms of revenue growth and profitability which is a result of market share gains in both businesses as well as the success of the cost control initiatives of the company. The company successfully and seamlessly underwent GST transition in all its businesses without a single day’s loss of revenue in any retail format,” Titan Company said in a press release on Friday last week after the stock market got closed.
“Regulatory developments like GST implementation, continuous drive against unaccounted wealth and the more recent developments related to the credit situation of the jewellers, will pose serious challenges for the jewellery industry in India. The same situations will prove to be tail-winds for organized corporate jewellers like Titan Company with strong balance sheets,” Titan Company added.