On Friday, shares of the watch-maker closed 2.6 percent higher at Rs 2018.75 on BSE. They also hit an all-time high of Rs 2023.85. The stock gave a total return of nearly 71 percent in the last 1 year, thereby outperforming Sensex returns of 49 percent.
Shares of Titan Company had risen nearly 3 percent on Friday as some analysts were confident about the company’s revenue growth prospects. Some believed that the jewellery-maker could sustain its premium valuation on the back of superior earnings growth.
Revenue growth is expected to be driven by the company’s jewellery division through gains in market share from the unorganised players and aggressive store expansion, said Antique Stock Broking.
Revenue from the jewellery segment, which forms a major chunk of the company’s consolidated revenue, witnessed a healthy on-year growth in the quarter ended June.
Titan also operates in business segments such as watches and wearables, and eyewear.
Besides, the hope that the jewellery-maker will garner more market share has also boosted sentiment for the stock lately.
"The recent mandatory hallmarking of gold jewellery introduced in India has been playing out well for the stock of Titan as this will reduce the price gap between branded Gold Jewellery and Jewellery sold by unorganised players. This will help gain market share for strong players like Titan," said Awanish Chandra, Head of Institutional Equities at SMIFS.
Antique Stock Broking has initiated coverage on shares of Titan Company with a "buy" recommendation and has assigned a target price of Rs 2,228 which implies an over 10 percent upside from Friday’s closing price.