Buy Titan Company, target price Rs 2040: Motilal Oswal

Motilal Oswal has buy call on Titan Company with a target price of Rs 2040. The current market price of Titan Company Ltd. is Rs 1733.3. Time period given by analyst is one year when Titan Company Ltd. price can reach defined target.

Titan Company Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 156498.94 Crore) operating in Gems and Jewellery sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 7551.00 Crore, down -1.41 % from last quarter Total Income of Rs 7659.00 Crore and up 58.86 % from last year same quarter Total Income of Rs 4753.21 Crore. Company reported net profit after tax of Rs 568.00 Crore in latest quarter.


Investment Rationale
While valuations of 59x FY23E EPS are not inexpensive, the long runway for profitable growth deserves a premium multiple. The brokerage maintains Buy rating with TP of INR2,040 per share (65x FY23E EPS).

Promoter/FII Holdings
Promoters held 52.9 per cent stake in the company as of March 31, 2021, while FIIs held 18.1 per cent, DIIs 11.5 per cent and public and others 17.5 per cent.