Market Movers: What fired gains in Vodafone Idea, Jhunjhunwala-backed Titan

The year that started with fears that the company’s long-pending demise may actually come true when it teetered on the brink of financial ruin, has ended with the company increasingly confident of catching up with rivals

and Reliance Jio.

That optimism reflected in today’s session as the stock closed over 9 per cent higher as investors look forward to a revival in the company’s earnings in 2022 aided by tariff hikes and possible induction of new equity investors.

That said, some analysts are concerned that investors may have priced in too much optimism and now execution on market’s expectations is likely to drive gains in the stock. Any failure to deliver, on the other hand, would result in deep cuts.

ANOTHER BUMPER QUARTER AHEAD FOR ?

While the emergence of the Omicron variant has dampened investor enthusiasm for consumer-facing companies, Titan is not facing any such issues.

Shares of the jewellery maker surged more than 3 per cent in the session as investors look forward to a strong business update from the company next week. Titan had already achieved considerable recovery in its business in the September quarter, but the December quarter is when investors expected to see real growth.

With the wedding season along with the delayed festive season buying, Titan is likely to post blockbuster December quarter numbers.

INDIGO PAINTS TO OFFER COLOURFUL GROWTH

Brokerage firm Motilal

Services believes that Indigo Paints could offer earth-scorching growth rates going ahead if its management executes its strategy to perfection.

The brokerage firm initiated coverage on the stock with a ‘buy’ rating with a price target that implied more than 17 per cent gains from current levels. Motilal Oswal Financial expects the paint maker to report sales and net profit growth of 28 per cent and 41 per cent, respectively, in the next three years.

No surprise then that shares of the company were in huge demand as they ended the last session of 2021 over 8 per cent higher at Rs 2,128.60 apiece on BSE.