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Shares of Titan Company hit a fresh all-time high of Rs 1044.30 in early trade on Monday after the company reported a 45.97 per cent rise in consolidated net profit to Rs 411.09 crore for the third quarter ended December 2018 on Friday.
It had had posted a net profit of Rs 281.61 crore in the corresponding period last fiscal.
The scrip gained as much as 5.35 per cent to Rs 1044.30 at around 9.40 am (IST), while the BSE Sensex was trading 152 points down at 36,317.30.
Total income during the quarter stood at Rs 5,934.11 crore, up 35.34 per cent against a total income of Rs 4,384.4 crore in the year-ago period, the company said in a BSE filing.
Brokerage firm Sharekhan in a report said, “Titan registered strong performance in first nine months of FY2019 on the back of strong growth in the jewellery business and a gradual recovery in the watches business.
We have broadly maintained our earnings estimates for FY2019, FY2020 and FY2021.”
The brokerage firm expects revenues and PAT to clock a CAGR of 16 per cent and 22 per cent over FY2018 to FY2021.
Sharekhan maintains ‘buy’ recommendation on the stock with unchanged price target of Rs 1,200.
Motilal Oswal Financial Services also maintained ‘buy’ rating on Titan with a target price of Rs 1,180.
“After another quarter of significant beat to our forecast, we have raised our EPS by 2.4 per cent and 3.2 per cent for FY19 and FY20, respectively.
High valuations are fully justified for a business that has perhaps the best topline growth visibility in the large cap FMCG/Retail space (20 per cent CAGR growth in jewellery business, the largest segment, in the next five years),” the brokerage firm said.
