Shares of Titan Firm witnessed a decline of over 7% in morning commerce on BSE on Monday, Could 6, in response to the corporate’s weaker-than-expected March quarter outcomes. Titan’s share worth opened at ₹3,481.10, falling to ₹3,287 after the disappointing outcomes have been reported. The fairness benchmark Sensex, nevertheless, was up by 0.30% at 74,096 throughout the identical interval.
After market hours on Friday, Could 3, Titan reported a 5% year-on-year rise in consolidated web revenue, reaching ₹771 crore for the quarter ending on March 31, 2024. Regardless of this, whole revenue for the quarter rose by 22% YoY to ₹11,472 crore. Nevertheless, the corporate’s EBIT for the quarter skilled solely a ten% YoY progress, reaching almost ₹1,192 crore.
Whereas the Jewelry phase’s whole quarterly revenue grew by 19% YoY to just about ₹8,998 crore, the ‘Watches & Wearables’ phase’s whole revenue stood at ₹940 crore, up by 8% YoY. Titan shares have outperformed the fairness benchmark Sensex over the previous yr, with an almost 29% improve.
Though Titan’s share worth hit its 52-week excessive of ₹3,885 earlier this yr, it has confronted a decline to its 52-week low degree of ₹2,666.55. For the present calendar yr, Titan’s share worth is down by about 4%. Regardless of this, high brokerage corporations have maintained their earlier suggestions on Titan inventory, albeit with some trimming of estimates as a consequence of gold inflation and honest valuation issues.
Motilal has maintained a purchase name on Titan inventory with a goal worth of ₹4,100, acknowledging Titan as its high shopper discretionary play in India. Equally, Kotak has an add name on Titan inventory with a revised honest worth of ₹3,600, whereas JM Monetary has maintained its purchase name on the inventory with a diminished goal worth of ₹3,825.
Regardless of short-term challenges similar to volatility in gold costs and decrease marriage ceremony dates impacting progress and margin, brokerage corporations consider in Titan’s long-term progress potential, citing the corporate’s superior execution capabilities and the massive alternative dimension available in the market.
