1:10 Split, 1 Bonus, 23 Dividends: Tata Group's Gems & Jewellery Stock Recommended To BUY, PL Sets Rs 3,980 TP

Tata Group-backed gems and jewellery giant, Titan Company is a leader in its segment. With a market cap of Rs 3.34 lakh crore, Titan has skyrocketed by a whopping 1,583.18% since its first bonus issue of 1:1 and stock split of 1:10. Titan is also among the top dividend paying gems and jewellery stock. Currently, Titan is nearing its 52-week high, and brokerage Prabhudas Lilladher has set a new all-time high target.

Titan Share Price:

On Monday, Titan's share price ended at Rs 3,731.85 apiece, down by 0.9% on BSE with market cap of Rs 3,31,308.48 crore. Titan shares are seeing correction as they near its high levels.

Titan Company's share price was at Rs 3,764.45 apiece on BSE, broadly flat on the special trading session of Saturday. However, the stock is near its 52-week high of Rs 3,885 apiece.

From its 52-week low of Rs 2,320 apiece, Titan Company is up by 62.3% currently. In a year, Titan shares have zoomed by 57%, but its 5-year gains is a whopping 258% making it a multibagger. But Titan's all-time gains is a mind-boggling 53,722.14%.

Prabhudas Lilladher Target Price On Titan:

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher added Titan Company to the brokerage's medium-term tech pick.

Parekh's note said, "The stock after out near 3,887 levels, has witnessed a short correction, thereafter, consolidating taking support near the 3,500 zone, and currently has shown signs of improvement with a pullback witnessed, with the RSI also flattening out and indicating a trend reversal to signal a buy on the daily chart."

Further, the analyst said, "A decisive move past the significant 50EMA level of 3,620, has further strengthened the bias to anticipate a further upward move in the coming days. With the chart looking attractive, we anticipate a positive move ahead, and suggest buying the stock for an upside target of Rs 3,980, keeping the stop loss of Rs 3,530 level."

Titan Dividend:

Titan is a dividend-paying stock. Since June 2001, the company has delivered up to 23 dividends. At the latest, the company paid dividends of up to Rs 10 per share in the last 12 months.

On the current market price, Titan has a dividend yield of 0.27%.

Titan Bonus Issue:

Titan has announced only one bonus share as of now. It was on June 23, 2011, Titan paid 1 bonus share on the existing 1 share, taking the ratio to 1:1.

So, if you held 500 shares of Titan before June 23, 2011, you will receive another 500 shares as a bonus after the ex-bonus date. This will take your total shareholding to 1,000.

But the stock split's charm will multiply your number of shareholding by 10 times, increasing your corpus by now impressively.

Titan Stock Split:

On the same day of turning ex-bonus, Titan also turned ex-split with its face value splitting to Rs 1 from earlier Rs 10. That would be a stock split ratio of 1:10.

Adjusting to the stock split, 1,000 shares (after the bonus issue) will rise to 10,000 shares (1,000 x 10).

On the ex-bonus and ex-split date, Titan shares were Rs 223.65. Since then, Titan has now given a massive 1,583.188% return as of now.

This gain is much higher if includes dividend income from Titan.

About Titan Company

Titan Company Limited ("Titan"), a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation (Tl DCO), commenced its operations in 1987 under the name Titan Watches Limited. In 1994, Titan diversified into Jewellery (Tanishq) and subsequently into eye care. Over the last three decades, Titan has expanded into underpenetrated markets and created lifestyle brands across different product categories including fragrances (SKINN), accessories Indian dress wear (Taneira) and thoughtfully designed Women's Bags (IRTH). Titan is widely known for transforming the watch and jewellery industry in India and for shaping India's retail market by pioneering experiential retail.