Titan Company share price scaled fresh 52-week high for the second consecutive day on Wednesday, rising over 3 per cent on BSE
Titan Company share price scaled fresh 52-week high for the second consecutive day on Wednesday, rising over 3 per cent to Rs 1,620.95 apiece on BSE. Rakesh Jhunjhunwala’s favourite stock surpassed its previous 52-week of Rs 1,576 per share. With today’s gain, Titan shares have rallied over 125 per cent from the March low of Rs 720, taking the total market capitalisation of the company to Rs 1.40 lakh crore. Just before the share market opened, the company informed that its jewellery division has crossed the recovery phase to the growth phase. It also said that the company’s other two large divisions have moved much closer to the full recovery.
AR Ramachandran, Co-founder & Trainer, Tips2trades told Financial Express Online that based on the Q3FY21 guidance of Titan, the company seems to be back on the growth trajectory with strong festive demand and steady gold prices. “However, technically, the stock has entered overbought territory and investors are advised to book profits at current levels to re-enter near 1380-1400 in the coming weeks,” Ramachandran said.
Titan Company share price, however, is still down 66 per cent from its all-time high of Rs 4,765 apiece in June 2011. Tata group firm’s jewellery segment reported a 15 per cent on-year growth in sales in October to December quarter, on the back of festive season along with a pent up demand for wedding jewellery, as most of the weddings were deferred in the first half of FY21. “The quarter also witnessed a well-rounded recovery with improvement in walk-ins and pick up of sale in metros, sub-1-lakh category and studded segment,” Titan said.
Watches and wearables division had a recovery rate of around 88 per cent in the third quarter ended December 31, compared to the revenue of the same quarter in last year. The company also said that omnichannel capability has been scaled up to 80 per cent of ‘World of Titan’ and Fastrack stores. The eyewear unit had a recovery of 92 per cent in the third quarter of the current fiscal, compared to the revenue of the same quarter in last year. The company’s other businesses had a revenue recovery of around 80 per cent, compared to the revenue of the corresponding period of the previous year.