This Tata Group Stock Can Rally 30%, Feels Motilal Oswal

Broking firm, Motilal Oswal has recommended buying the stock of Titan Industries.

The firm believes that the stock can rally as much as 30% from current levels. Quarterly numbers in line

According to Motilal Oswal, Titan Company 3 QFY 23 result was in line on sales front but lower- than- estimated EBITDA margin meant that EBITDA missed our estimate by 11% base < extra _ id _ 105 >" the. { "selector": ".imagebox-wrapper", "duration": "5000ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.15)"] } }

"Base quarter EBITDA margin was the highest since 2 QFY 06 and hence, there was an unusually unfavorable, which will not be the case going forward though.

The three- year consolidated Sales/EBITDA/PAT CAGR remained robust at over 20% each in 3 QFY 23 report has noted.

Buy the Titan stock with a target price of Rs 3070

"Titan has a strong runway for growth, given its market share of sub- 10% in Jewelry and continued struggles faced by its unorganized and organized peers. { "selector": ".imagebox-wrapper", "duration": "5000ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.15)"] } }

Its medium- to- long-term earnings growth visibility is nonpareil.

Maintain BUY with a target price of Rs 3,070 ( premised on 55 xFY 25 E EPS)," the brokerage has said.

What the management of Titan is saying?

According to the Motilal Oswal report, Jan' 23 is witnessing robust jewelry demand despite high gold prices since Dec' 22. { "selector": ".imagebox-wrapper", "duration": "5000ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.15)"] } }

Even adjusted for Omicron in the base, the three- year CAGR in Jan' 23 is even better than 3 QFY 23 three- year CAGR.

The management is hoping that it will fare further better in the next couple of months.

According to the management, there are two reasons why Titan is not witnessing the adverse impact of the recent slowdown in urban discretionary consumption.

The stocks is picked from the brokerage report of Motilal Oswal. The above- mentioned information is purely informational. { "selector": ".imagebox-wrapper", "duration": "5000ms", "easing": "ease-out", "fill": "forwards", "keyframes": { "transform": ["scale(1)", "scale(1.15)"] } }

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By Sunil Fernandes Goodreturns source: goodreturns.in Dailyhunt View more