Q3 Impact: Rakesh Jhunjhunwala’s Top Stock Attracts Up to 36% Upside by Brokerages

By Malvika Gurung

Investing.com — The Indian luxury products company Titan (NS:) posted a stellar earnings result for the Dec-ending quarter, beating Street’s estimates. At 2:35 pm, the stock was trading 0.2% lower at Rs 2,469.9 apiece.

Titan’s net profit zoomed 135.6% YoY to Rs 987 crore and revenue from operations surged 30.6% YoY to 9,515 crores in Q3, due to a strong demand across all its consumer businesses, led majorly by festive purchases and the wedding season, with its jewellery segment performing exceedingly well, and other businesses growing over pre-pandemic levels.

As a result, most brokerages maintained their positive ratings on the Tata Group’s stock, while some revised their targets. Macquarie (ASX:) has set the most optimistic target on the stock at Rs 3350/share, an upside of 35.6% compared to the current price.

Ace investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala increased their stakes in the company by 0.22% in Q3 to 5.09%.

Jefferies (NYSE:): Maintains ‘Hold’; TP: Revised from Rs 2,300 to Rs 2,600

As the company’s regionalisation strategy garnered 30% new buyers in key markets in Q3, the brokerage upgraded its EPS estimates by up to 10% for Titan. 

Morgan Stanley (NYSE:): ‘Overweight’; TP: Revised from Rs 2,501 to Rs 2,720

Titan’s earnings for Q3 exceeded the brokerage’s estimates by 16%, while management remained optimistic on the near and medium-term outlook. TP at an upside of 10.12%, while writing this report.

Motilal Oswal (NS:): Maintains ‘Buy’; TP: Rs 2,475

The jewellery segment presented impressive growth despite stable prices, led by volume and robust new customer additions. Nonetheless, Titan’s market penetration in the sector remains under 10%.

Prabhudas Lilladher: ‘Buy’; TP: Revised from Rs 2,915 to Rs 2,833

The brokerage remains positive on the stock due to its structural story on account of market share gains, strong balance sheet, franchisee based model and strong brand.