Titan share price soars nearly 1% after Q4FY23 net profit jumps 50%; Should you buy, sell or hold Titan stock-

Titan share price soars nearly 1% after Q4FY23 net profit jumps 50%; Should you buy, sell or hold Titan stock?

Titan share price rose 0.83% to Rs 2,676.1 today after the company recommended a dividend of Rs 10 per equity share and reported a 50% jump in its standalone net profit to Rs 734 crore for the quarter ended March 2023 against a net profit of Rs 491 crore in the year-ago period. The revenue from operations rose 25% to Rs 8,753 crore in the quarter under review from Rs 6,977 crore in the previous year. Titan’s jewellery division jumped 24% to Rs 7,576 crore in the March quarter and the watches and wearables segment recorded a revenue of Rs 871 crore, up 40%, backed by strong growth in the analog watches segment and a multi-fold increase in wearables. Titan shares have risen 6% in the past one month and over 17% in the last one year.Brokerage call: Should you buy, sell or hold Titan stock?Motilal Oswal: Buy – CMP: Rs 2654.05 – Target Price: Rs 3080 (16% upside)

“Titan boasts of an outstanding track record that surpasses its peers, with superior short-term growth prospects, and exceptional long-term growth potential, all of which justify its high valuations,” said analysts at Motilal Oswal. The brokerage reiterates a BUY rating with a target price of Rs 3,080 (premised on 55xFY25E EPS).

Nuvama: Buy – Target Price: Rs 3218 (21.2% upside)

“Valuing the stock at 60x FY25E PE, in line with its five-year average, leads to a revised target price of Rs 3,218 (earlier Rs 3,290). We expect Titan to clock among the highest growth in the consumer space driven by market share gains and the relative resilience of the customer segment it serves,” said analysis at Nuvama Institutional Equities. Titan remains one of the top picks of the brokerage.

JM Financial: Buy – Target Price: Rs 3090 (16.42% upside)

“We believe Titan’s continued confidence in its businesses’ growth path going forward is likely to assuage concerns about urban discretionary consumption slowdown for the time being. We continue to like Titan but expect the stock price to be somewhat range-bound in the immediate term,” said analysts at JM Financial.

Religare: Buy – Target Price: Rs 3147 (18.57% upside)

“We estimate its Revenue/EBITDA/PAT to grow at a CAGR of 13.7%/23.2%/23.6% over FY23-25E. Hence, we have maintained a Buy rating with a revised target price of Rs 3,147 valuing the company at a PE multiple of 56x on FY25E EPS,” said analysts at Religare Broking.

HDFC Securities: Reduce – Target Price: Rs 2400 (9.5% downside)

“While Titan continued to clock healthy revenue growth of INR 103.6bn (up 33%; 4-year CAGR: 21%; HSIE: INR 98.8bn), the margin fell short of expectations. We maintain our FY24/25 EPS estimates and REDUCE rating with a DCF-based TP of INR2,400/sh (implying 47x Jun-25 P/E),” said analysts at HDFC Securities.

Prabhudas Lilladher: Buy – Target Price: Rs 2992 (12.73% upside)

“Titan is gradually emerging as a lifestyle play which will help sustain premium valuations. The company currently trades at 49.3x FY25E EPS with a 20% EPS CAGR over FY23-25. We retain Buy,” said analysts at Prabhudas Lilladher.