Titan Company's shares surged to a new 52-week high, gained 4.46 percent at Rs 1,071.45 apiece in intra-day trade on Tuesday, as investors continue to reward the jewellery stock for robust third-quarter results for the financial year.
Tata group firm company on Friday reported a 45.97 percent jump in consolidated net profit to Rs 411.09 crore for the third quarter ended December 2018. The company had posted a net profit of Rs 281.61 crore in the corresponding period last fiscal.
The stock of the company exceeded its share price on Monday with a previous high of Rs 1,006 it recorded on April 18, 2018. The share price of the company on Monday was Rs 1,044 apiece.
Titan's rival, PC Jewellers' shares ended at Rs 67.90 apiece on BSE, down 2.93 percent. In the last year, PC Jewellers has fallen more than 84 percent, underperforming the BSE Sensex by almost 90 percent.
Titan Company has given over 33 percent return to investors in the last one year, outperforming the Sensex by over 28 percent. The stock has gained 11 percent this week.
Edelweiss Securities has recommended 'buy' rating on the stock with a price target of Rs 1,185.
Titan's jewellery business recorded a growth of 36.8 percent in the third quarter over last year and had an income of Rs 4,890 crore compared to Rs 3,576 crore last year.
The company's management, in an interview to CNBC-TV18, said they are maintaining the jewellery business growth guidance at 22 percent for the financial year.
"Titan, being one of the largest players in the organised industry with attractive offerings, we believe that it would emerge as a clear winner of the shift from unorganised to organised. Furthermore, changing trend of buying jewellery for fashion instead of investment would enhance premiumisation," said Dolat Capital in a brokerage report after the company released its results.
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