Titan Share Price: Titan The company’s share price rose 8 per cent to Rs 2,170.95 on the BSE in Thursday’s intra-day trade after the company said its total sales in the first quarter of FY 2022-23 (Q1FY23) stood at year-on-year (YoY). 205 percent increase. Due to strong marriage demand and low base. In Q1FY23, jewelery revenue nearly tripled with a growth of 207 per cent. The department started the FY 2013 well in this period with strong sales on the auspicious occasion of Akshaya Tritiya in the month of May after 2 years of COVID-induced lockdown. Walk-in and buyer both grew along with revenue, while ticket size improved marginally as compared to Q1FY22, Titan Company Said in its Exchange filing.
Meanwhile, the Watches & Wearables division posted its highest ever quarterly revenue in Q1FY23, growing at 158 per cent with healthy growth across all brands and products. Multi-Brand Retail (MBR), Titan’s flagship channel World and Large Format Stores (LFS) continued on their growth trajectory from FY 2012 onwards. The wedding season pushed up demand for all brands on April 22 and May 22.
stock price history
The stock has gained 11 per cent in the last two trading days, and has gained 19 per cent in intra-day trade from its 10-month low of Rs 1,827 on July 1. However, over the past three months, Titan has underperformed the market with a fall of 13 per cent, compared to a fall of 8.5 per cent in the S&P BSE Sensex. The stock had hit a 52-week high of Rs 2,768 on March 21, 2022.
Titan was trading 6 per cent higher at Rs 2,127.30 at 09:38 am against a 0.67 per cent rise in the benchmark index.
What do analysts say?
Despite the strong performance, analysts at Axis Capital maintained a ‘Reduce’ rating on the stock. “We expect standalone sales ex-bullion to grow 207 per cent to Rs 75.7 billion (21 per cent at 3-year CAGR),” analysts said. “Overall standalone revenue is expected to grow 169 per cent year-on-year to Rs 87.4 billion; 21 per cent on 3-year CAGR basis with the same 3-year CAGR at EBITDA level,” he said. Axis Capital’s target price per share on Titan is Rs 2,050, indicating a decline from Thursday’s opening price.
Keeping in view the strong growth in Titan’s business, Kotak Securities said that even though Titan sells (on-year) flat jewelery on 2Q-4QFY23E, it will end the year with a growth of 22 per cent. Kotak Securities, while maintaining its ‘ADD’ rating on Titan stock, said, “Titan’s LT allure reflects a low market share in a large addressable market and a wide margin and focus on maintaining its edge over the competition.” The brokerage firm has imposed a fair value of Rs 2,400 on the share.
Brokerage house Morgan Stanley has an overweight rating on the stock with a target of Rs 2,621 per share.
Prabhudas Lilladher said: “We are looking at an increase of 16.6 per cent and 13.4 per cent in the EPS estimates for FY 2013/24.
“The company’s growth strategy consists of 1) aggressive store expansion (19 in 11 Q) in jewellery, 2) increased focus on the wedding segment 3) focus on lighter jewelery and 4) sports with designs and campaigns to cater to regional tastes and preferences has been added further.
Motilal Oswal said: “Titan continues to be our top choice for large-cap consumption in India, with strong earnings growth visibility and 20 per cent compounding over the long term. In the jewelery industry, which is organizing fast “Titan is clearly at the forefront of organized players leading this growth. It has a long runway for growth, with a market share of 6 per cent.”
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