Titan share price hits all-time high, market capitalization surpasses ₹3 lakh crore mark

The shares of Tata Group’s  jewellery to eyewear brand Titan rose over 1.5% to ₹3,401 per share, hitting a new record of all-time high on BSE on Tuesday’s trading session. 

The market capitalization of Titan company also crossed ₹3 lakh crore mark on November 21. Titan shares have consistently contributed ₹1 lakh crore to its market capitalization every two years.

The Titan stock surged amid rising gold imports that surged to the highest in 31 months. According to a Reuters report, with gold prices easing before the festivities due to a drop in US bond yields, there was a 60% year-on-year (YoY) surge in the demand for gold by jewelers.

Titan stock has also nearly gained over 30% so far this year. On March 28, 2019, it achieved a market capitalization of ₹1 lakh crore. Subsequently, within the next 18 months, it doubled its market value, reaching ₹2 lakh crore and surpassing that milestone on October 7, 2021.

The Tata Group’s company has achieved ₹3 lakh crore market capitalization almost after a two year gap. 

Following today's development, Titan is now ranked as 18th among India's most valued companies. Additionally, it stands as the second-highest valued company within the Tata Group portfolio.

Titan holds a prominent position in the extensive portfolio of the recently deceased investor, Rakesh Jhunjhunwala, who maintained a stake in the company for the past two decades. Jhunjhunwala's initial investment in Titan was when the stock was valued between ₹20 and ₹40, and he remained a steadfast shareholder throughout this period.

As per the shareholding pattern for the September quarter, the ownership of late Rakesh Jhunjhunwala in Titan, now under the name of his wife Rekha, amounts to 5.37%. Based on the current market price, this stake is valued at well over ₹16,000 crore.

Following the financial results for the September quarter, Motilal Oswal Financial Services upheld their recommendation to buy the stock, setting a target price of ₹3,900.

"Management remains optimistic about the festive and wedding seasons despite the upswing in gold prices. The company's other businesses, such as watches, wearables, and eyecare, also consistently delivered healthy performance," Motilal Oswal said in its report.

The brokerage stated that its recommendation to 'buy' the target is based on a 65x FY25E EPS. Additionally, the brokerage has identified the company as its top pick in the consumer discretionary sector in India.