Tata Stock: After tremendous sales in jewelery this festival season, global brokerage firms are bullish on a stock of Tata Group. It is advised to buy by upgrading its rating. In the long term, there can be a profit of more than Rs 900 on each share.
Tata Jewelery Stock: There is a tremendous rise in the stock market on Thursday, 23 October. The impact of the tremendous increase in sales of gold jewelery on Diwali is also being seen on jewelery stocks. The impact is also being seen on Tata Group’s stock Titan. Today till 12.30 pm there is a rally of more than 1% in this stock and it is trading at Rs 3,769.50. Brokerage firm UBS has upgraded its rating to Buy. Know what is the target price of the share and how much return can be earned on it…
Target price of Titan Share
Global brokerage firm UBS has changed the rating of Tata shares from neutral to BUY. Along with this, the target price has also been increased from Rs 3,600 to Rs 4,700. In this way, at the current price, a profit of around Rs 926 can be made on each share. After the arrival of the report, there is a rise in the stock. On intraday, it has made a new 52-week high of Rs 3,797. According to UBS, this stock can give returns of up to 25% in the coming two years.
How strong is Titan Company?
Titan is a company with a strong brand, whose customer base is spread across the country. According to UBS, this could be the best time to invest in Tait, as the company’s business model is stable and profits are likely to accelerate in the coming years. About 46% growth is expected from the company in FY26 and 21% growth in FY27.
How are Titan’s Q2 results?
Talking about the second quarter results, Titan’s performance has been tremendous. Overall consumer business grew 20%, while domestic jewelery sales grew 19%. Due to the increase in gold prices, the average ticket size also increased. Growth in Titan’s brands like Tanishq and CaratLane was in double digits. Studded jewelery witnessed mid-teens growth and gold coin sales also remained strong.
Titan’s valuation and PE
Titan shares are currently trading at about 6% discount to the 5-year average PE. UBS believes that the company will see an increase in its earnings in the coming times, which makes this stock attractive for long-term investors.
Shareholding and investor confidence
The market cap of Titan, the largest company in the jewelery segment, is Rs 3.35 lakh crore. It has 52.90% promoter, 47.02% public holding. About 764,182 retail investors held 8.72% and 50 mutual funds held 7.84% in the September quarter. Domestic institutional investors held 13.99% and FIIs held 16.11%. Talking about the returns of this stock, investors have got a return of 15% in the last one year.
Disclaimer: This article is for information only. Do not take any information given herein as investment advice. Investing in share market is full of risk. Before investing, definitely consult your financial advisor or market expert.
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