Titan share price: Titan Company’s share price rose 8 percent to Rs 2,170.95 on the BSE in Thursday’s intra-day trading after the company said total revenue in the first quarter of fiscal 2022-23 (Q1FY23) would be year-on-year. year grew by 205 percent (year-on-year). ) led by strong wedding demand and a low base. In Q1FY23, jewelry sales nearly tripled, growing 207 percent. The division had a good start to FY23 with solid sales on the auspicious occasion of Akshaya Tritiya in May after 2 years of Covid-induced lockdowns over this period. Both walk-ins and buyers grew in line with revenue, while ticket size improved marginally compared to Q1FY22, Titan Company said in its exchange filing.
Meanwhile, the watches and wearables division achieved its highest-ever quarterly revenue in Q1FY23, growing 158 percent year-over-year, with healthy growth across all brands and products. The major channels of Multi-Brand Retail (MBR), Titan World and Large Format Stores (LFS) continue their growth trajectory from FY22. The wedding season boosted demand for all brands in April 22 and May 22.
Share price history
The stock is up 11 percent in the past two trading days and 19 percent from a 10-month low of Rs 1,827 on July 1 in intraday trading. However, in the past three months, Titan has underperformed the market by falling 13 percent, compared to an 8.5 percent drop in the S&P BSE Sensex. The stock had hit a 52-week high of Rs 2,768 on March 21, 2022.
At 9:38 AM, Titan was trading 6 percent higher at Rs 2,127.30, against a 0.67 percent increase in the benchmark index.
What do analysts say?
Despite the robust performance, Axis Capital’s analysts have maintained a ‘Reduce’ rating on the scrip. “We expect stand-alone ex-precious metal sales to grow 207 percent to rupees 75.7 billion (21 percent at 3-year CAGR),” analysts said. “Total stand-alone revenue is expected to grow at 169 percent year-on-year to Rs 87.4 billion; 21 percent on a 3-year CAGR basis with comparable 3-year CAGR at the EBITDA level,” she added. Axis Capital has a price target of Rs 2,050 per share on Titan, indicating a downside to Thursday’s opening price.
Kotak Securities noted the robust growth in Titan’s business and said that even if Titan hits flat jewelry sales (year-on-year) over 2Q-4QFY23E, it will end the year growing 22 percent. “Titan’s LT appeal comes from a low market share in a large addressable market and a large gap from the competition and focus on maintaining its lead,” said Kotak Securities while reviewing their ‘ADD’ rating on Titan shares. maintained. The brokerage firm has a fair value of Rs 2,400 pinned on the scrip.
Morgan Stanley brokerage firm has maintained an overweight rating for the stock with a target of Rs 2,621 per share.
Prabhudas Lilladher said, “We are increasing FY23/24 EPS estimates by 16.6 percent and 13.4 percent after strong company performance in 1Q23, the first normal 1Q after FY20.”
“The company’s growth strategy is set in Jewelry with 1) aggressive store expansion (19 in 1Q) 2) Greater focus on wedding segment 3) focus on lighter jewelry and 4) designs and campaigns to cater to regional tastes and preferences,” added it further.
Motilal Oswal said: “Titan remains our top pick in the large cap consumer space in India, with strong visibility of earnings growth and a long-term increase of 20 percent. organized players to lead this growth. The runway for growth is long, with a market share of 6 percent.”
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