ICICI Securities sees the positive growth in the iewellery, watch, and eyewear segment as a positive for Titan.

The Titan Analyst: Analysts at ICICI Securities led by Manoj Menon maintained their ‘buy' rating on the stock but revised the target price from ₹2,800 to ₹2,600.

The Titan Thesis: Titan reported a 12% year-over-year increase in total revenue to ₹10,651 crore this quarter. The company's profits, on the other hand, slumped 4% year-over-year to ₹951 crore.

However, the company registered double figures YoY growth in income in the jewellery, watches, and eyewear segment. Revenue from the jewellery segment was up 11.2% at ₹9,518 crore, the watch and wearables segment's revenue grew by around 14% to ₹811 crore, and the eyewear segment revenue was up 11.5% to ₹174 crore.

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ICICI Securities sees this growth as a plus for the company. It said that the company's growth in the jewellery segment was encouraging. Along with this, the analysts also noted that despite the increase in "gold prices during Dec'22-Jan'23, strong customer demand in Jan'23 (at 20%+) is comforting."

On the other hand, the analysts pointed out the "higher than expected" rise in competition in the jewellery segment as a possible downside. The company's management also highlighted the rising competitive intensity on gold rates. 

However, analysts at ICICI Securities remain optimistic going forward. According to the brokerage firm, "this is one company where the capabilities to translate the opportunity to earnings is high."

Price Action: Shares of Titan were up 4.12% to ₹2,400 in the early hours of trading on Friday.

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