Titan Shares Tank 4% As Q4-Print Disappoints Brokerages

Titan’s share price extended losses to a fourth consecutive session on Monday morning as the company’s March quarter results disappointed investors and analysts. The stock went down 4% to hit an intraday low of ₹3,385.

What Happened: The Tata Group company’s net profit stood at ₹771 crore for the March quarter, marking a modest 4.7% increase from ₹731 crore reported in the corresponding period last year, slightly below the anticipated ₹800 crore. Revenue went up 27% to ₹11,229 crore from ₹9,215 crore in the same quarter last year, aligning closely with consensus estimates of around ₹11,100 crore.

Analyst Reactions: JP Morgan maintained its “overweight” rating for the stock with a price target of ₹3,950. The brokerage said that the company’s Jewellery segment’s performance was in line with its estimates, but the recent rise in gold prices could add volatility to demand. The analysts also added that the growth in Watches & Wearables and Eyewear was relatively subdued.

Goldman Sachs maintained its “buy” rating for the stock but cut the price target to ₹4,075 from ₹4,125. The brokerage also noted that the Jeweller segment’s strong performance continues. The analysts highlighted that the segment is facing headwinds as gold prices soar and competition intensifies.

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Emkay maintained its “buy” rating for the stock but cut the target price to ₹4,150 from ₹4,350. The brokerage said that the company’s PAT missed estimates by 10-12%, due to a 70-100bps jewellery margin miss and higher subsidiary loss. The brokerage said that revenue on the other hand was in line with its estimates.

Kotak Securities also maintained its “add” rating for the stock but revised the price target down to ₹3,600 from ₹3,725. The brokerage said that the March quarter results saw competitive intensity weigh on profitability across businesses. The analysts said that the Jewellery giant is prioritising growth and market share gains over margins.

Nuvama downgraded the stock to “hold” from “buy” cutting the price target to ₹3,867 from ₹4,107. The brokerage said that the company’s profit missed estimates due to lower margins in the Jewellery segment. The analysts expect lower margins in the segment to continue due to increased competition.

Jefferies maintained its “hold” rating for the stock with a price target of ₹3,500. The global research firm also reiterated that the company missed estimates on earnings due to weak margins in the Jewellery segment. The analysts highlighted that the management’s commentary on margins was subdued. The research firm expects the Titan share price to remain range-bound in the near term.

HDFC Securities maintained its “sell” rating for the stock with a target price of ₹2,750. The brokerage said that the Jewellery segment’s margin was hit due to higher marketing spending to defend market share. The brokerage said that the non-jewellery segments showed healthy growth but disappointed on profitability.

Price Action: Titan’s share price was down 3.88% to trade at ₹3,396.95 as the markets opened on Monday.

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