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Shares in Tata group company Titan — which operates jewellery brands CaratLane and Tanishq — extended gains to a second straight session on Tuesday, coming within Rs 50 of its record high, after JPMorgan maintained an 'overweight' rating on the stock with a target price of Rs 2,800 apiece.

JPMorgan's target for the stock implies upside potential of five percent from its closing price on Monday.

Describing CaratLane as a "diamond in the making", JPMorgan said the business has pivoted more towards an omni-channel model for the company.

According to the brokerage, CaratLane accounts for Rs 120 in the value of the Titan stock.

On Tuesday, Titan shares gained by as much as Rs 60.6 or 2.3 percent to Rs 2,722.1 apiece with large volumes on BSE. In March 2022, the stock had scaled an all-time high of Rs 2,767.6 apiece.

A total of 77,000 Titan shares changed hands on the bourse by noon, as against a daily average of 31,000 in the past two weeks.

JPMorgan also said CaratLane brings high technology capability that can be leveraged by Titan Company.

Titan's jewellery business has been boosting its earnings thanks to festive demand and stable gold prices. Last month, Titan gave a positive outlook for the rest of the year ending March 2023 after reporting a strong performance for the April-June period.

Titan's net profit for the three months to June 2022 came in at Rs 793 crore as against the estimate of Rs 740 crore by analysts polled by CNBC-TV18.

Its margin jumped almost three times to 13 percent for the three-month period compared with the corresponding period a year ago.

Revenue from the jewellery unit surged 2.8 times to Rs 7,956 crore compared with the year-ago period, according to a regulatory filing.

ICICI Securities said it was a good quarter for Titan's jewellery business, contributing to the company's steady overall performance. The brokerage highlighted Titan's strong new buyer contribution and a recovery the studded ratio to pre-COVID levels, though the wedding contribution was slightly lower.

Titan shares have risen 9.8 percent since its last earnings announcement, a period in which the Nifty50 has risen a modest 3.2 percent.

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