Titan hits record market cap of ₹2 trillion, festive demand rallies stock

Tata group’s Titan Co Ltd’s market capitalisation struck the ₹2 trillion peak on Thursday (October 7) on the back of a record setting share price of its stock, after it reported strong recovery in sales in the July-September quarter of 2021-22.

Titan’s shares hit a 52-week high price of ₹2,378.35 on the BSE, up 10.8% from its previous close, taking the market capitalisation to ₹2.09 trillion.

Titan is the second Tata group company to scale the ₹2 trillion peak after Tata Consultancy Services, whose current market valuation is ₹14,19,973.35 crore.

Titan is also a favourite of billionaire investor Rakesh Jhunjhunwala, who according to reports, earned ₹900 crore within minutes of the stock rise.

The watches, eyewear and jewellery company saw strong demand in the second quarter as sales revived to or above pre-ppandemic levels.

The C Venkarataman-led company registered 78% year on year growth in its jewellery segment while the compound annual growth rate (CAGR) over two years was 32%. The jewellery segment increased the number of stores to 414 by adding 13 new ones in Q2.

Also read: Digital gold sales online gives jewellers reason to smile this festive season

Similar sales was seen in the watches and wearables division which showed 73% year-on-year growth. The eyewear segment registered 121% year-on-year growth in sales, driven by its youngest brand Taneira and fragrances and accessories.

Analysts Emkay Research and Motilal Oswal said they good consumer demand in the upcoming festive/wedding season which would further boost revenues in the coming quarters.

Emkay Research expects Titan’s revenues to grow by 64% to ₹7,100 crore, and estimated the profit after tax of ₹550 crore against ₹200 crore in Q2FY21.

Softening of gold prices (down 8 per cent QoQ) coupled with strong festive and wedding season is expected to accelerate growth trajectory from Q3FY22 onwards, ICICI Securities said.