Titan‘s share price continued to make gains for the fourth straight session on Friday as the company posted its operational updates for the quarter ended June.
What Happened: The Tata Group company in a regulatory filing said that it recorded revenue growth of 20% year-over-year in the April-June period “with all key consumer businesses exhibiting double-digit growth in the quarter.” The Rekha Jhunjhunwala-invested company also added 68 new stores in this quarter taking Titan’s total retail outlets to 2,778 stores.
The company’s Jewellery division recorded a 21% YoY growth. The wearables segment registered 13% YoY growth. The eyecare segment witnessed 10% YoY growth. The company’s emerging businesses segment (Fashion and Fragrances) grew 37%.
CaratLane, one of the company’s subsidiaries grew 32% YoY. The company said that the growth in its jewellery businesses was sales led by Akshaya Tritiya sales in April and wedding purchases in June.
Analyst Reactions: The updates have managed to impress brokerages as well. Citi maintained its ‘buy’ rating on the stock with a price target of ₹3,280. The firm said that the update shows that the growth story has continued in the first quarter of FY24. The firm also added that the growth of 21% in the jewellery segment was impressive considering the volatility in gold prices during the April-June period.
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Goldman Sachs also maintained its ‘buy’ rating for the stock with a price target of ₹3,175. The firm also reiterated that the company’s growth in the jewellery segment was impressive and better than expected.
Price Action: Titan’s share price was up 2.85% to trade at ₹3,195 as the markets opened on Friday.
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