Titan shares climb by 27%; stock settled at Rs 3,078

Titan shares: The Tata group firm has recently picked up another 27.18 per cent stake in its aid CaratLane Trading from the jewellery firm’s founder and family for Rs 4,621 crore.

Titan shares have climbed 26.96 per cent in the last six months. On Monday, The share was 0.95 per cent higher at Rs 3,078 against its last close of Rs 3,049.15. 

Prabhudas Lilladher (PL) has given an ‘Accumulate’ rating on the counter with a one-year target cost of Rs 3,300. The Tata Group firm has recently gathered up another 27.18 per cent stake in its subsidiary CaratLane Trading from the jewellery firm’s founder and family for Rs 4,621 crore.

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“We cut our standalone FY24/FY25 EPS estimates by 1.9 per cent/3.5 per cent as Titan will have to partly fund Rs 4,600 crore payout for 27 per cent stake purchase in Caratlane.”

“We believe this acquisition is in the right direction for acquiring full control of the largest omnichannel play in the light jewellery segment in India with a presence across 233 stores. Post this acquisition; Titan will hold a 98.28 per cent stake in Caratlane with a balance held by employees under the ESOP scheme,” PL said.

“Caratlane reported a full turnaround in FY23 with PBT (Profit before tax) of Rs 48.2 crore and has shown a sales growth of 32.8 per cent with a 5.5 per cent EBIT margin. Titan will be able to fully leverage growth prospects in light jewellery with omnichannel play in Caratlane,” it said.