Titan‘s share price was wobbly on Monday morning even as the company posted a strong business update for the quarter ended September. The update received mixed reactions from brokerages.

What Happened: The Tata Group company reported a growth of around 25% in the September quarter. The jewellery giant opened 75 new outlets during the quarter, taking its total retail network to 3,171 stores.

The jewellery division saw a strong 26% year-on-year growth. The watches and wearables segment also performed well, growing 20%. In the EyeCare division, growth was more moderate at 6%, with two new stores added during the period. Meanwhile, emerging businesses reported a 14% increase, supported by the launch of four additional stores.

What Are Brokerages Saying: Investec maintained its “hold” rating, with a target price of ₹4,100. While the analysts see strong revenue growth, they caution that muted profit after tax growth may be a factor in Q2.

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Citi has maintained a “neutral” rating on Titan, with a target price of ₹4,110. The analysts are cautious about Titan’s Q2 performance due to a decline in the studded mix, possibly linked to uncertainties regarding the value proposition of diamonds.

Citi also notes the contrasting trends of rising gold prices and falling diamond prices and raises concerns over the long-term impact of lab-grown diamonds on the market.

Macquarie, on the other hand, maintains an “outperform” rating with a target price of ₹4,100. The brokerage highlights healthier-than-expected sales, particularly in jewellery, which has offset weaknesses in eyewear and other segments. Macquarie expects standalone EBITDA growth of 9% in Q2, driven by strong jewellery and watch sales.

Emkay Global has a “buy” rating with a revised target price of ₹4,400. The analysts said that Titan has exceeded growth expectations across segments, particularly jewellery, which posted 26% growth in Q2 versus their expectation of 15%. They believe this Q2 outperformance will alleviate investor concerns.

Price Action: Titan’s share price was down 1.19% to trade at ₹3,626.50 as the markets opened on Monday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.