Analysts say that Titan Company Ltd. has always been a reliable return player at all times
Titan Company's shares crossed the Rs 3 lakh crore market capitalization threshold for the first time, marking yet another significant milestone. Following its Tuesday all-time high of Rs 3,400, the stock closed at Rs 3,394.15, up 1.44 per cent from previous day's close.
Titan's market capitalization was Rs 3.01 lakh crore at the conclusion of the day. With today's gains, Asian Paints was displaced from the 17th spot in terms of market capitalization by Titan shares.
Titan Company Ltd.'s shares were trading at Rs 3,422.50 at 1:35 PM, up by Rs 28.05 with a gain of 0.83 per cent.
The news comes after Titan was allowed to acquire an additional stake in Caratlane. The company also announced that it will hire more than 3,000 employees in the coming five years.
Analysts stated that Titan is a reliable return player at all times. According to a recent research analysis by ICICI Securities, Titan stock returned 40 per cent Compound annual growth rate (CAGR) over a 20-year period, and throughout that time, its earnings increased 30 Per cent CAGR, according to a report by Business Line.
Titan was picked by renowned investor Rakesh Jhunjhunwala as one of his top stocks. Rekha Rakesh Jhunjhunwala's ownership share in the company remains at 5.37 per cent.
In a recent analysis, Kunal Vora, Head of India Equity Research at BNP Paribas, stated that Titan continues to meet its long-term guidance in its jewellery segment, with a 20 per cent sales CAGR, despite the lacklustre growth in the majority of consumption categories.
According to Sharekhan, Titan maintained its forecast of 12–13 percent profit margins in the jewellery industry, with no discernible effect from the decline in diamond prices on the profitability of studded jewellery.
Thanks to positive industry tailwinds, a robust brand memory, expanding franchise across geographies, a solid product mix, and strong brand recall, the company has continuously produced exceptional financial performance. In comparison to its five-year average one-year future PE of 60.12, the stock is currently trading at 80 times its one-year forward earnings.