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market | IST

Titan shares hit record high on Q2 demand recovery; here's what brokerages said

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Titan shares surged to a record high after the company released a business update detailing growth in revenue and store additions.

Titan shares surged on Thursday after the company said it witnessed a strong across-the-board recovery in demand after the second wave of the pandemic. The Titan Company stock jumped more than nine percent to a 52-week high in morning deals, as brokerages remained positive about the company's prospects, with JPMorgan and Credit Suisse raising their target prices.
At 9:30 am, Titan shares traded with a gain of 8.9 percent at Rs 2,338 on the BSE, having hit a record high of Rs 2,344.6 minutes ago.
Titan's sales moved swiftly above or close to pre-pandemic levels in most of the divisions, the company said in a regulatory filing after market hours on Wednesday.
"Most stores are now fully operational barring few in select towns having localized restrictions, with overall store operation days exceeding 90 percent for the quarter," Titan said.
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Titan Company - part of the Tata group - said it accelerated its retail network expansion during the quarter.
Here's what brokerages said on Titan Company:
JPMorgan
The brokerage maintained a 'neutral' rating on Titan but raised its target price to Rs 2,320 from Rs 2,000. The company's Q2 revenue is ahead of expectations, driving a six percent EPS upgrade over FY22-23, and supports a premium valuation, according to JPMorgan.
Credit Suisse
The brokerage has retained a 'neutral' rating on the stock and increased its target price to Rs 2,150. The jewellery growth in Q2 is significantly ahead of expectations, it said. Credit Suisse increased its FY22 earnings estimate by eight percent, and for FY23 and FY24 each by five percent.
UBS
The brokerage has a 'neutral' call on the stock with a target price of Rs 2,100. The company's improved retail operations and pent-up demand have led to strong jewellery growth, UBS said. However, the brokerage expects limited upside to Titan's Q2 margin given its inferior mix.
CIMB 
The brokerage upgraded the stock to 'add' with a target price of Rs 2,362. A robust recovery and structure growth drivers appear to be in place for the company, CIMB said. The growth in Titan's jewellery segment in Q2 is strong, the brokerage said.