Rakesh Jhunjhunwala portfolio stock Titan Company has tanked 15 per cent so far in 2022 amid high volatility on Dalal Street. Titan shares have even underperformed benchmark NSE Nifty 50 which has tumbled over 7 per cent so far this year. According to the latest shareholding pattern, Rakesh Jhunjhunwala owns 3.5 crore shares while his wife Rekha holds 95 lakh shares of Titan. The couple collectively held 5.05% stake in the company till quarter ended March 2022. Despite the correction, several brokerages remain bullish on the Tata group company stock. Titan shares were quoting at Rs 2,136, down 0.4 per cent on NSE intraday.
Long-term structure still bullish
Santosh Meena, Head of Research, Swastika Investmart Ltd. said, “Titan is trying to create a base around the 2,050 level after a healthy correction, however 2,300-2,350 is a critical resistance area as a cluster of key moving averages. Therefore, 2,050-2,350 is a well-defined trading band and if it manages to take out the 2,350 level, we can expect fresh bullish momentum while if it slips below the 2,050 level, then 1,900 will be the next sacrosanct support level. Existing investors should hold this stock as the long-term structure is still bullish whereas one can start to accumulate from current levels.”
Purchase at Rs 2,140 with a stop loss of Rs 2,030
“Titan’s stock price has dropped 15% so far in 2022, compared to a 7% drop in the benchmark Nifty index. Given its market share of less than 10% and the continuous problems of its unorganised and organised competitors, TITAN has a long expansion runway. It has unrivalled medium-to-long-term earnings growth visibility. Technically, the stock has been moving in an upward channel since March 2022 and is currently trading near the lower band of the channel, indicating a buying opportunity. Apart from that, Titan is trading above its 100 and 200 SMAs after a 15% pullback, indicating stock strength. Stocks can be purchased at a price of 2,140 with a stop loss of 2,030 with a target price of Rs 2,600,” said Vijay Dhanotiya – Lead Technical Research at CapitalVia Global Research.
Should you buy, hold or sell Titan Company shares?
ICICI Direct in a report last month said, “We continue to remain structurally positive on the stock as high growth visibility justifies premium valuations and maintain a BUY on the stock.” The brokerage values Titan at Rs 2,725
Axis Capital upgraded the stock to ‘Reduce’ from a ‘Sell’ rating last month with a target price of Rs 2,050. The brokerage said that the recent correction has reduced Titan’s premium to its historical P/E band.
Sharekhan by BNP Paribas also has a buy call on Titan Company Ltd. with a target price of Rs 2,900.0.
Titan Company shares remain Motilal Oswal’s 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 Jewellery industry, which is organising at a rapid pace, Titan is clearly at the vanguard among organised players in leading this growth. Its runway for growth is long, with a market share of just 6%,” the brokerage said in its report last month. It maintained a ‘buy’ rating on the stock with a target price of Rs 2,900, implying 39% upside.
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