CLSA upgrades Titan to 'buy' from 'sell', raises TP to Rs 372 from Rs 285

MUMBAI: CLSA has upgraded shares of Titan Company to buy from sell and raised target price to Rs 372 from Rs 285 citing favourable risk reward despite demand concerns on demonetisation

"...,a 28% dip in past 3 months provides a good opportunity.. While near term is tough and consensus seems behind the curve on earning cuts, we see favourable risk-reward at this level," said CLSA in a not3.

The biggest uncertainty for Titan is on the GST rate as a rate beyond 3-5% would be negative.


The liquidity crunch in the aftermath of demonetisation would impact demand for jewellery in general and should have a higher impact on the unorganised sector, said CLSA.

"While this does not augur well for the entire sector, it presents Titan with an opportunity to grow market share from <5% currently. It has already been focussing on expanding its product range and upping the ante in wedding jewellery – we believe there would be acceleration in efforts now," it said.