Home / Markets / Stock Markets /  Titan shares jump. Should you buy, sell, hold after Q3 results?

Shares of Titan rose more than 4% to 2,402 apiece on the BSE in Friday's opening deals even as the company reported about 10% decline in consolidated net profit to 913 crore for the third quarter ended December 2022, impacted by higher expenses, as compared to 1,012 crore in the same quarter last fiscal. Its consolidated total income stood at 11,698 crore compared to 10,094 crore in the year-ago period.

“Titan Company reported a miss in Q3 FY23 performance as the expected margin accretion on a high revenue base did not come through given activations in a volatile demand environment. That said, after a strong festive and a not-so-great November-December, demand in January is robust again (around 20% 3Y CAGR growth) and attribute this to weddings, which have seen a significant shift to the Q4 quarter," said Edelweiss which has a Buy rating on Titan shares with a target price of 3,290.

Thereafter, demand may normalise given the consumer sentiment, but we still expect Titan to clock among the highest growth in the consumer space; the stock stays a top pick, said Edelweiss.

“Reported India jewellery growth at <10% was broadly in-line, secondary was better at 15% - growth was supported by new buyer growth, with slight rise in bill value. The segmental margins were however a slight miss, partially due to higher discounts. Watch segment grew in double-digits but margins were lower. Management commentary for Jan was positive in jewellery after a slight moderation in Nov/Dec. We remain at Hold (PT of 2,550)," as per Jefferies.

“Given strong execution, we remain confident of the high-teens earnings trajectory continuing for Titan in the medium term. The stock has corrected ~20% in the last 3 months which, in our view, is unwarranted. We maintain BUY on Titan, with Mar-24 TP of Rs2,940, based on 52x FY25 EPS. Stronger traction in the Taneira/Handbags/Intl. businesses remains a potential upside to estimates," said another brokerage Emkay.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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