Titan tops Rs 3 lakh crore market-cap
wealth creator for late billionaire investor Rakesh Jhunjhunwala, Titan, on Tuesday crossed ₹3 lakh crore in market value in a glittering testimony to the local consumer's swift ascent along the luxury gradient.
In achieving this milestone, the one-time horologist became only the second company from the Tata Group to cross a valuation threshold earlier breached by Tata Consultancy Services (TCS). Titan is also the second company in the retail sector, after DMart's parent Avenue Supermart, to surpass this benchmark.
The stock, which has witnessed a 26% surge in the past six months while overshadowing the 9% gain for the Nifty, is poised to sustain its upward trajectory and sustain its premium valuations, as the outlook remains robust.
«Titan has an impressive track record of outperforming its peers as well as exceptional long-term growth potential, all of which justify its premium valuations,» said Pratik Prajapati, analyst at Motilal Oswal Financial Services.
«Titan's healthy growth outlook, favourable industry trends, and a strong balance sheet make it a compelling option in the discretionary sector.»
Titan shares reached a record peak of ₹3,400 on Tuesday before closing 1.44% higher at ₹3,394. This surge coincided with a sharp increase in gold imports, reaching the highest level in 31 months.
On Tuesday, the global brokerage CLSA upheld its optimistic stance on the stock, raising the target price to ₹4,029 from the previous ₹3,948 per share.
The company has consistently delivered superior financial performance aided by the company's strong brand recall, growing franchise across geographies, good product mix and favourable industry tailwinds. The stock is currently trading at 80 times its one-year forward earnings
