Titan shares rose 2 percent on Thursday after brokerages gave positive views on the stock following the company's strong guidance for the fiscal year 2019-20. The company reported strong growth in the fiscal year 2018-19 and gave a robust outlook for the next fiscal. The company on Thursday said that it expects to achieve 20 percent revenue growth despite muted industry demand growth.

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"Taking advantage of our business momentum, we will be increasing the pace of our network rollout which will further aid us in dominating our markets. Strong momentum driven by underlying strengths developed meticulously over the years and an aggressive network rollout plan, gives us the confidence of targeting around 20% growth in FY 20 despite the muted outlook for the economy," the company said in a press release.

Brokerages are bullish on the stock after strong guidance for the financial year 2019-20 and expect a 6-15 percent upside in the stock.

On a year-to-date basis, the stock has outperformed the market by surging 21 percent, as compared to the 8 percent rise in the S&P BSE Sensex.

According to Prabhudas Lilladher, Titan has given an optimistic outlook for FY20 with a target to achieve 20 percent revenue growth despite muted industry demand growth.

This is on the back of growth in jewelery business led by a higher number of wedding dates, 35 stores additions (35 in FY19), increased share of wedding jewelery and high-value diamond jewelery and gains from consumer shift from unorganized to organized sector. Steady growth in watch division led by new launches and success of smartwatches also supported earnings.

The company reported a rise of 41.6 percent in net profit of Rs 416 crore in the December quarter (Q3FY19) on the back of healthy performance inthe jewellery segment. The jewellary division grew by just over 22 percent in FY19.

Here's what brokerages expect from the stock:

Citi | Upside: 6 percent

We maintain a 'buy' call on the stock with a target at Rs 1,175 per share. The fourth quarter business update suggests strong growth trends across segments and the FY20 growth outlook of 20 percent despite market pressures seems encouraging.

Market share gains of the company should continue and for Q4, however, we assume slight jewelry margin contraction.

BofAML | Upside: 15 percent

Maintain a buy call with a target at Rs 1,270 per share as the pre-quarterly update suggests healthy momentum in Q4.

FY19 growth of jewelry, watches and eyewear segment implies 21 percent, 13 percent, and 19 percent growth in Q4, respectively.

FY20 topline growth target of 20 percent may be surpassed given multiple tailwinds.

Morgan Stanley | Upside: 13 percent

We have an overweight call on the stock with a target at Rs 1,250 per share. We believe that the company's jewelry business will continue to perform well and it is on track to achieve its guidance of Rs 5,000 crore in consumer sales.

We see strong growth trends across divisions with 21 percent revenue growth in FY19. The company is looking to leverage strong business momentum by raising the pace of new store roll-out. It is confident to achieve 20 percent topline growth target in FY20. Jewelry division reported more than 22 percent revenue growth for FY19, versus our target of 23 percent.

Macquarie | Upside: 7 percent

We have an Outperform Rating with a target at Rs 1,186 per share. The fourth quarter implied jewelry segment revenue growth at 18 percent. FY20 revenue growth guidance of 20 percent is in-line with our estimate.

Prabhudas Lilladher | Upside 8 percent

For Q4FY19, we estimate 19.5 percent jewelry sales growth and 13.5 percent volume growth led by sustained market share gains. We expect 11.3 percent sales growth in watches with 15 percent EBIT margin led by benefits of restructuring, higher activations and success of new launches. We remain

positive on the long term structural story and estimate 25.8 percent profit CAGR over FY19-21.

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