Titan up 6.8% amid bonus, split

Intra-day players flocked to the counter of Titan Inds, a Tata group watches and jewellery manufacturing company, to gain from hyper activity seen amid bonus and stock split adjustments on Thursday. The counter attracted huge volumes of 41.5 lakh shares on the day, compared with the two week average of 1.6 lakh shares on the BSE. Hectic intra-day activity was also reflected in significantly low percentage of delivery-based volumes on the counter.

Only 4.8% of the day's traded quantity actually changed hands while transactions in the remaining 95% shares were squared off before end of the session. Titan Inds has rewarded its shareholders with a liberal one-for-one bonus after recording robust earnings growth in 2010-11. The company also split its 10-stock into ten shares of Re 1 each. After adjusting for bonus and stock split, the share price ended 6.8% higher at 229 on the BSE. According to Motilal Oswal Securities, Titan Inds has been one of the best retail plays due to strong brand, leadership in watches, branded jewellery and sunglasses, and strong cash flows.

The broking firm expects the company's net profit to grow at CAGR of 33% over FY11-13, with a 160-basis-point margin expansion. Apart from the Tatas, the presence of a Mumbai-based high profile investor as a major shareholder in the company makes Titan one of the most-favoured among large-cap companies, according to brokers.