Why Titan Shares Hit Another 52-Week High Today

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%.

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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.

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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Posted In: Tata GroupTitan