Titan trades in green as it plans to raise funds through NCDs

Shares of Titan Company gained about 0.5 percent on October 11 after the jewellery and watch maker said it would consider raising funds by issuing non-convertible debentures (NCDs).

At 10:24am, the Titan stock was trading 0.60 percent higher at Rs 3,285 on the NSE.

Titan Company said in a BSE filing on October 10 that its Board of Directors will meet on October 17 to consider issuing NCDs on a private placement basis, within the permissible borrowing limits.

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Titan Company had earlier reported that its India business grew by 20 percent in the April-June quarter, driven by a healthy demand during Akshaya Tritiya and an attractive gold exchange programme. The buyer growth was 14 percent and the average ticket sizes moved up 6 percent compared to Q1FY23.

Titan stock call: Brokerages stay bullish

HSBC maintained a ‘buy’ call on the Titan stock and raised the target price to Rs 3,900 in a report released on October 10. “In Q2FY24, the company’s jewellery sales surged by 19 percent YoY, showcasing a remarkable 25 percent 4-year CAGR,” the brokerage house said. These sales figures exceeded the market consensus. Titan also saw a robust performance across divisions, particularly in watches and wearables.

Goldman Sachs issued a ‘buy’ recommendation for Titan with a target price of Rs 3,425 per share in a report released on October 9. Despite a high base, the second quarter threw up a strong performance, particularly in the jewellery business, with a 19 percent revenue growth. Titan attributed this success to the robust demand for diamond-studded ornaments. However, continued investments in exchange programmes and consumer offers may impact margins for the quarter.

Morgan Stanley has rated Titan as ‘overweight’ with a target price of Rs 3,190 per share. “In Q2, the company exceeded expectations by achieving 20 percent YoY growth, defying the narrative of sluggish discretionary demand. This growth was achieved despite the extended inauspicious period’s impact. Impressively, the jewellery segment maintained a 25 percent 4-year CAGR, significantly outperforming historical trends. These positive trends reinforce Titan’s strong market position and growth potential, making it an attractive investment choice,” the report said.

Titan stock performance

The Titan stock has given a return of 26.58 percent over the last six months. The benchmark Nifty50 index has given a return of 11.10 percent over the last six months.

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