Titan shares hit a new 52-week high on strong Q1 business update; brokerages maintain bullish view
- Titan Company said it registered a 20% year-on-year (YoY) revenue growth with all key consumer businesses exhibiting double-digit growth for the April-June quarter of the current fiscal.
Shares of jewellery and watches maker Titan Company rallied over 3% on Friday after the company reported revenue growth of 20% in the first quarter of fiscal 2024 on the back of robust all-round performance. Titan share price hit a fresh 52-week high of ₹3,211.10 apiece on BSE.
Titan Company said it registered a 20% year-on-year (YoY) revenue growth with all key consumer businesses exhibiting double-digit growth for the April-June quarter of the current fiscal.
The company’s jewellery division grew 21% in Q1FY24. The key categories of gold and studded grew with no notable change in the overall product mix.
Watches & Wearables Division's 13% YoY growth comprised of 8% growth in analog watches segment and 84% YoY growth in Wearables, the company said in a regulatory filing.
EyeCare Division saw sales growth of 10% YoY, while in Emerging Businesses, Fragrances & Fashion Accessories grew 11 % YoY. CaratLane grew 32% YoY driven with healthy contributions from multiple avenues.
During the quarter, the company added 68 stores, including CaratLane, taking Titan's retail footprint to 2,778 stores.
Global brokerage Morgan Stanley said Titan’s initial Q1 trends were strong with 20% YoY company-level growth led by 21% growth in jewellery segment.
The brokerage noted that Akshaya Tritiya and wedding purchases in June led the company’s performance, despite gold price volatility.
Morgan Stanley has an Overweight rating with a target price of ₹3,207 per share.
Goldman Sachs said Titan’s jewellery sales growth was stronger than expected, while its 4-year CAGR improves to 23%.
It has a Buy call on the stock with a target price of ₹3,175 per share.
Analysts at domestic brokerage firm Prabhudas Lilladher Pvt Ltd said that Titan Company’s Q1 jewelry performance was encouraging at a time when there was a significant rise in gold prices.
“We believe that robust jewelry demand, improved mix and hallmarking benefits, expansion of 100 stores in eyewear in FY24, acceleration in store openings in watches and scale up in emerging businesses like Taneira and wearables will be major growth drivers for Titan,” said Amnish Aggarwal, Head of Research, Prabhudas Lilladher.
The brokerage has a Buy rating on the stock with target price of ₹3,242 apiece.
Motilal Oswal Financial Services believes earnings growth visibility remains strong for Titan. It has compounded earnings by 20% for an elongated period.
It believes that the company has ample opportunities for growth, given its sub-10% market share in Jewelry and the ongoing challenges faced by its unorganized and organized peers. Its medium-to-long-term earnings growth potential is unparalleled, it said.
The brokerage house has a Buy rating on the stock with a target price of ₹3,325 per share.
Titan Company share price has rallied more than 50% in the last one year. At 9:55 am, the shares of Titan Company were trading 2.99% higher at ₹3,198.45 apeice on the BSE.
Disclaimer: The views and recommendations given in this article are those of individual analysts and brokerage firms. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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