Global firms such as CLSA and Deutshce Bank are bullish on Titan Ltd, which forms a significant part of the Rs 10,000 crore portfolio of Rakesh Jhunjhunwala.
Titan Ltd shares, a long-time favourite of ace investor Rakesh Jhunjhunwala may have corrected by more than 5% in the last one month, however, global research firm CLSA remains bullish on the stock. CLSA has a target price of Rs 700 on the stock, which was trading at Rs 567.7, implying an upside of more than 20% from the current levels. CLSA says that Titan will continue to gain market share in the jewellery segment, which remains the primary factor for growth. In fact, a significant jump in jewellery demand had more than offset subdued sales of the company’s watches and eyewear segments, which helped Titan to post Net profit figure of Rs 237.97 crore in the three months ending 30 June, 2017, more than double of the previous quarter.
Earlier this week, Deutsche Bank had maintained a buy call on the stock with a target price of Rs 625. Deutsche Bank expects the demand to be a bit lesser in the July-September period, as customers had made advance purchases during pre-GST sale.
Titan is one of the most prominent stocks in the Rs 10,000 crore portfolio of the investing icon, Rakesh Jhunjhunwala as at March 31st 2017, with accounted for Rs 3,644 crore then. Rakesh Jhunjhunwala has more than 8.3% stake in Titan Ltd, as at the end of June 2017.
Titan shares have had a stellar run at the bourses so far with returns of more than 76% in the year, as compared to BSE Sensex returns of 17.5%, implying an outperformance of more than 58%. Titan has been one of the few stock which Rakesh Jhunjhunwala has held for more than 12 years. However, as per the latest data filed by Titan in the exchanges, he had reduced his stake by 0.3% in the Apr-June quarter. As at March end, he held 8.57% stake, as compared to 8.37% as at June end.