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  • CMP : 3,412.4 Chg : -39.65 (-1.15%)
  • Buying Range : 2590-2623
  • Target : 2,870.0 (10.11%)
  • Stoploss : 2,455.0
  • Target Period : 3 Month

25 Apr 2023

Four months consolidation breakout signifies acceleration of upward momentum…

Titan Weekly Bar Chart

TECHNICAL_INFOGRAPHIC_1
Technical Outlook
Titan Industries has undergone significant price/time correction over past eighteen months and in current context stock has resolved out of past four month consolidation (2626-2270) along with falling channel breakout in Nifty signalling resumption of uptrend
 
Structurally, share price retraced July-October 2022 rally (1825-2791) by just 50% over past six months. Slower pace of retracement of rally indicate inherent strength. Further share price held its long term rising 52-week ema twice during January and March 2023 period despite elevated gold prices highlighting resilience
 
We expect share price to challenge life highs and head towards ₹2900 as it is 123.6% retracement of November 2022-March 2023 decline (₹ 2791-2321) over next few months

Fundamental Outlook

Titan has transformed itself from being a watch maker into an enviable lifestyle company, having a strong fortress in the jewellery segment (90% of sales) under the Tanishq brand. Robust performance in challenging times reaffirms our thesis of long term market share gains for Titan (targeting 10% market share in near term from current 7%). 
 
Titan in its Q4FY23 pre quarterly update reported a strong show with double digit revenue growth across all divisions on a marginally favourable base due to impact of Omicron in the base quarter. Revenue for the Jewellery division (including carat lane) in Q4FY23 grew 23.6% YoY driven by buyer growths, both new and repeat, and higher ticket size. On three-year CAGR basis (excluding bullion sales), revenue growth continues to be impressive at 25%. CaratLane (72% owned Subsidiary) continues to scale to new highs with robust growth of 56% YoY in Q4FY23. Watches and wearables division registered strong growth of 41% on YoY basis led by strong traction in analog watches segment and tripling of revenues from wearables segment.

For FY23, Jewellery division (including CaratLane) has displayed an impressive show with growth ~ 39% YoY. Titan has been a secular growth story with consistent market share gains from the unorganized players.  Over a long term company aspires to grow jewellery revenues by 2.5x by FY27 (implied CAGR: 20% from FY22 base

Follow up summary of Gladiator Stocks

Other product open recommendations

Date Product Scrip Name Market Strategy RP Target Stoploss Time Frame
11-Apr-2023 Momentum Pick ONGC Cash Buy 158 171 148 30 Days
17-Apr-2023 Momentum Pick Abcapital Cash Buy 163 176 154 14 Days
19-Apr-2023 Momentum Pick Coromandel Cash Buy 948 1023 897 14 Days
21-Apr-2023 Momentum Pick Lupin Cash Buy 695 753 648 14 Days
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Source: Company, ICICI Direct Research

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For example: The ‘Momentum Picks’ product carries 2 intraday recommendations. It is advisable to allocate equal amount to each recommendation

INFOGRAPHIC

Disclaimer

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