By Aditya Raghunath
Investing.com -- As the festival season in India kicks off and the wedding season is scheduled to start soon, brokerage firm Sharekhan forecasts that Titan Company Ltd (NS: TITN ) will reap benefits.
The stock for India’s largest jewellery maker has been on an upswing and gained over 23% since its close of Rs 1,714.55 on July 30. Sharekhan is bullish on the stock and says it can gain 9% more to Rs 2,305.
It said, “Titan will be one of the key beneficiaries of a structural shift by consumers towards trusted brands. Government's announcement for compulsory hallmarking will reduce pricing premium between regional/small players versus large players such as Titan, which bodes well. The festive season has begun on good note with Onam seeing good jewellery sales in South India, also supported by recent fall in gold prices. Jewellers believe that the ongoing festive season and upcoming wedding season will boost sales in the coming quarters and drive up profitability and cash flows in the medium term.”
It added that as people start stepping out again, sales of watches will see a good recovery led by a surge in online sales and higher demand for wearables/digital watches.
The company’s strong balance sheet (cash kitty of Rs. 2,000 crore) will help in competing and gaining market share from standalone players and regional players in the coming years.
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