Titan Company has been one of the best-performing stocks on the Indian bourses over the years. It was also one of Rakesh Jhunjhunwala‘s career-defining bets. So, if your dad invested ₹10,000 in this Tata Group company, here’s what would have happened.
The Investment: On 5th August 2013, Titan was trading at ₹280.35. The stock’s current value stands at ₹2,908 today. This means that an investment of ₹10,000 would have bought approximately 36 shares a decade ago. Today, those 36 shares would be worth approximately ₹1,04,688, marking a significant increase in value.
Background: Titan has been a key player in the retail industry, providing a range of products from jewellery to eyewear. However, the company’s recent Q1 earnings report and subsequent guidance cuts have not been well received by investors and analysts.
The company’s net profits for the April-June period stood at ₹753 crore, down 4% from the ₹785 crore profit it booked during the same period last year. This was lower than consensus estimates. The company’s revenue for the quarter stood at ₹11,897 crore, up 26% year-over-year.
Analysts have expressed mixed reactions to the numbers. Jefferies maintained its "hold" rating for the stock with a price target of ₹2,650, citing the company’s margins as a negative surprise leading to the earnings miss. Morgan Stanley maintained its "equalweight" rating for the stock with a price target of ₹3,190, noting that the company’s profits missed estimates by about 15%.
However, HSBC maintained its "buy" rating for the stock with a price target of ₹3,580, praising the impressive jewellery sales and maintaining a positive stance on the stock given the strong growth outlook.
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Price Action: Titan’s share price was down 3.03% to trade at ₹2,887 on Thursday afternoon.
Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
Editor’s Note: Artificial intelligence was used as a secondary aid in the writing of this story.
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