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  • CMP : 3,162.7 Chg : -30.40 (-0.95%)
  • 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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INFOGRAPHIC

Disclaimer

We/I, Dharmesh Shah, Nitin Kunte, Ninad Tamhanekar, Pabitro Mukherjee, Vinayak Parmar Research Analysts, authors and the names subscribed to this report, here by certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensations, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this... 

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