Tata's multibagger! This consumer discretionary firm turns Rs 10,000 to Rs 1.4 lakh in just 10 year
Titan, one of the flagship companies of Tata Group, recently crossed the Rs 3 lakh crore market cap on the back of a bumper surge in the last 10 years.
The shares have jumped a massive 1400% over the last decade. Accordingly, if an investor had invested Rs 10,000 in the stock 10 years ago and stayed put, the investment would have turned to nearly Rs 1.4 lakh.
In the last five years, the stock has more than tripled investors' wealth.
While the growth has moderated (30%) in the last one year, it still beat the benchmark Nifty, which gained about 7% in the same period.
Titan, a diversified consumer goods company, is widely known for transforming the watch and jewellery industry in India and for shaping India's retail market by pioneering experiential retail. It has a presence in watches, jewellery and eyecare segments.
The company has an EPS of 38 on a trailing twelve-month (TTM) basis and the stock is currently trading at a PE of 88.6.
According to the latest shareholding pattern available with the exchanges, promoters own a majority of the stake at 52.9%, while the rest of 42.1% lies with public shareholders.
Among the public shareholders, mutual funds have about 5.28% stake and foreign investors hold 18.2%.
Titan reported a nearly 10% rise in net profit for the quarter ended September 2023 at Rs 940 crore.
Revenue from operations grew by 34% YoY to Rs 11,660 crore.
Technical outlook — What should traders do?
Despite a stellar run in the past few years, analysts see further upside in the stock in both the short and the long run
«We observe a higher top and higher bottom formation on the daily chart. Further, the stock is outperforming the benchmark indices—even the momentum indicator.
