Motilal Oswal assigns a BUY rating to Tata Group's Titan stock with a target price of ₹3800. Q4 jewelry sales growth of 24% and a potential upside of 26% are projected.
Tata Stock: Amidst recent volatility in the Indian stock market, Titan, a flagship company of the Tata Group, has emerged as a b investment option. Brokerage firm Motilal Oswal has maintained a ‘BUY’ rating on Titan's stock, setting a target price of ₹3800. This represents a potential upside of approximately 26% from the current price.
Market Recovery, but Uncertainty Remains
On April 8th, the stock market witnessed a b recovery, with the Sensex climbing up to 1200 points and the Nifty 50 reaching 22,577. This followed a significant drop in the previous session driven by concerns over US President Donald Trump's tariff policies and the fear of a global recession. In this volatile environment, maintaining confidence in stocks like Titan could be beneficial for investors.
Titan's Q4 Performance: Store Expansion and Robust Growth
According to Motilal Oswal, Titan opened 72 new stores in the March quarter of FY25, bringing its total retail presence to 3,312 stores (including CaratLane).
Despite the rise in Gold Prices, the company recorded a 24% year-on-year growth in Jewellery Sales, exceeding the brokerage's projected growth of 18%.
The Watches & Wearables segment also saw a 20% growth. Analog watch sales for brands like Titan, Fastrack, and Sonata increased by 18%. In this segment, the company launched 41 new stores in Q4, including Titan World (20), Helios (10), and Fastrack (11) stores.
Stock Status and Investment Outlook
Titan's stock is currently trading approximately 22% below its 52-week high (₹3866.15), but it has risen by 5.24% in the last week. The brokerage's target price of ₹3800 from the current level (₹3023) is attractive for investors.
The company's market capitalization on the BSE is ₹2.79 lakh crore, and its long-term track record makes it a reliable investment option.
Advice for Investors
The brokerage house believes that Titan's business growth, brand value, and store expansion strategy make it a b contender for the long term. However, it is advisable to consult your risk profile and financial advisor before making any investment decisions.
