50% jump in 1 year: Jhunjhunwala’s pet stock has just been downgraded
Shares of the company have rallied nearly 50 per cent in last one year since July 3, 2018.
The foreign brokerage called the downgrade a valuation call. It said the re-rating of the stock is complete after the recent runup. At 53 times, Titan’s 12-month forward price-to-earnings (P/E) ratio is hovering at peak level.
Shares of the company have rallied nearly 50 per cent in last one year since July 3, 2018, while the benchmark BSE Sensex has gained 13 per cent in the same period.
Morgan Stanley has set a target price of Rs 1,300 for Titan. The scrip traded 1.49 per cent down at Rs 1,308.10 in early trade on Thursday, while the benchmark BSE Sensex was up 111 points at 39950.
Ace investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala together held 7.04 per cent stake in the company as of March 31, 2019.
Morgan Stanley recommended investors to shift to Jubilant Foodworks. Shares of the company traded 0.90 per cent higher at Rs 1,262 at 9.50 am (IST).