Tata Group led Titan Co Ltd crossed $2 trillion in market capitalisation on Thursday, October 7 owing to an announcement made by the company the day prior declaring that Titan had witnessed a strong improvement in demand in the July-September quarter, and its sales in most of its departments are either above or close to pre-pandemic levels.
Titan shares hit a record high on Thursday morning, opening at Rs. 2,222.85 after a previous close of Rs. 2,146.80 on the BSE. It then went on to hit ₹2353 on the BSE, up 9.61per cent from its previous close and was trading at Rs. 2,357.50 at 10:40 AM. It has reached a total market capitalisation of Rs. 2.07 lakh crores.
This makes Titan the second entity of Tata Group to cross the $2 trillion mark, the first being Tata Consultancy Services, which is a Mumbai-headquartered information technology services and consulting company.
Titan, an Indian luxury brand, reported recovery in many of its segments during the second quarter of FY22 on Wednesday. Its jewellery business, excluding bullion sales, reported a 78 per cent year-on-year growth, amassing a compound annual growth rate (CAGR) of 32 per cent on a two-year basis. It also reported that the jewellery segment has added 13 stores in the second quarter of FY22, taking its store tally to 414.
The watches and wearables segment recovered quickly, with sales acceleration witnessed across all product brands, Titan reported, clocking a 73 per cent year-on-year growth. Meanwhile, its eyewear division reported a growth of 74 per cent YoY in the same period.
Emkay Research, a market research and investment firm, accounted for the fully unlocking of the country in light of the dwindling COVID-19 cases, and the forthcoming festival and wedding season to likely result in a further increase in revenue in the upcoming quarters.
Owing to these developments, the firm also increased its quarterly and annual estimates, stating “Factoring in the strong growth momentum, we increase our FY23/FY24 EPS estimates by 8-12 per cent. Given the solid growth and earnings outlook, we raise our Sep’22 TP to Rs. 2,530 (from Rs. 2,000), valuing the stock at 65x Sep’23E EPS (from 55x Sep’23E EPS earlier),” in a note to its investors.