Why This Tata Stock Is Down Today

Titan‘s share price continued to go down for the third straight session on Thursday as the Tata Group company posted its earnings for the quarter ended June.

What Happened: The company’s net profits slumped 4% to ₹753 crore in the June quarter as against a profit of ₹785 in the same quarter last year. The company’s revenue from operations came in at ₹11,897 crore, up 26% from the year-ago period. The company’s topline beat analysts’ estimates of around ₹11,000 crore but the bottom line missed estimates of around ₹880 crore.

The jewellery segment’s revenue grew 22% year-on-year to ₹9,755 crore. Wearables saw revenue growth of 16.2% year-on-year to clock in ₹913 crore during the April-June period.

The company’s EBITDA went down 6% YoY to ₹1,125 crore. EBITDA margin was at 9.5%. Basic earnings per share for the quarter came in at ₹8.5.

Analyst Reaction: Jefferies maintained its “hold” rating for the stock with a price target of ₹2,650. The research firm said that the company’s margins were a negative surprise leading to the earnings miss. Morgan Stanley maintained its “equalweight” rating for the stock with a price target of ₹3,190. The firm also said that the company’s profits missed estimates by about 15%.

HSBC, on the other hand, maintained its “buy” rating for the stock with a price target of ₹3,580. The company said the Jewellery sales were impressive, and it maintained its positive stance on the stock given the strong growth outlook for the strong growth outlook.

Price Action: Titan’s share price was down %0.77 to trade at ₹2,954.15, at market open on Thursday.

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Posted In: EarningsNewsPrice TargetReiterationAnalyst RatingsTata GroupTitan