Wall Street major Morgan Stanley has named Titan Company, the country’s largest jewellery retailer, its new top pick, describing the stock as “The Golden Compounder,” while stating that recent concerns around potential regulatory restrictions have overshadowed the company’s strong operating performance.
Earlier this month, Prime Minister Narendra Modi publicly urged Indians to delay jewellery purchases for a year in an effort to help stabilise the rapidly weakening rupee. Just when investors thought the worst may already have been priced in, the Centre also raised import duties on gold and silver to 15%, triggering fresh panic across jewellery stocks. Titan shares, as a result, are down 8% in the last 1 month.
