Time to buy Titan Industries? Not yet say some analysts

Nachiket Kelkar
Moneycontrol.com

Titan Industries shares recouped some of the losses suffered from the CLSA rating downgrade on Wednesday. However, analysts still refrain from advising a "buy" on the jewellery and watch maker saying valuations still remain stretched. At 14:25hrs, the stock was up 6.4% at Rs 223.45, and is quoting ex-split and ex-bonus today. Titan had announced a bonus share issue in the ratio of one equity share of every one held in the company, and a sub-division of one equity share of Rs 10 face value into ten equity shares of Rs 1. The move was seen as an effort to improve liquidity of its shares in the stock market and make them affordable to small investors, especially after the share price soared to record levels. But some analysts say valuations still remain stretched. Titan Industries is trading at 40x forward earnings, said an analyst at a domestic brokerage who didn