Titan’s Share Price Dips 2% Amidst Q2FY24 Updates

Titan's Share Price Dips 2% Amidst Q2FY24 Updates
Titan's Share Price Dips 2% Amidst Q2FY24 Updates
Titan's Share Price Dips 2% Amidst Q2FY24 Updates
Titan's Share Price Dips 2% Amidst Q2FY24 Updates

Titan’s Share Price Dips 2% Amidst Q2FY24 Updates

Titan’s Share Price Dips 2% Amidst Q2FY24 Updates

Titan’s Share Price Dips 2% Amidst Q2FY24 Updates

Titan Company’s share price faced a 1.90% decline in the morning trade on BSE, opening at ₹3,308.95 compared to the previous day’s closing of ₹3,311.15. This downward trend followed the release of the company’s September quarter (Q2FY24) business updates. Despite the morning dip, Titan’s share price has shown remarkable growth, surging by approximately 22% in the past year, outperforming the Sensex, which recorded a 13% gain in the same period.

Robust Q2FY24 Performance

In its Q2FY24 business update, Titan reported a 20% year-on-year (YoY) revenue growth. The company expanded its retail presence by opening 81 new stores during the quarter, totaling 2,859 stores within the group. Titan’s jewelry segment saw a significant revenue increase of 19% YoY, with the domestic business driving this growth. The ‘Watches & Wearables’ segment witnessed a remarkable 32% YoY growth, while the ‘EyeCare’ and ‘Emerging Businesses’ segments rose by 12% and 29% YoY, respectively.

Diverse Performance Across Segments

Within the ‘Emerging Businesses’ segment, fragrances experienced a 4% YoY growth, while fashion accessories saw a slight decline of nearly 12% YoY. Taneira, a subsidiary of Titan, recorded an impressive 64% YoY sales growth and opened four new stores during the quarter. CaratLane, in which Titan holds a significant 98.28% stake, also reported healthy revenue growth, with sales increasing by nearly 45% YoY. The acquisition of an additional 27.18% of equity shares in CaratLane for ₹4,621 crore further strengthened Titan’s position.

Positive Outlook

Brokerage firms maintain a positive outlook on Titan’s stock following the Q2 business update. Motilal Oswal Financial Services retained its buy call with a target price of ₹3,795, anticipating a 15% upside. They believe Titan will continue to achieve double-digit growth across its key businesses, with strong earnings growth visibility. Morgan Stanley also maintained an ‘overweight’ view on the stock with a target price of ₹3,190, citing Q2 trends that surprised positively, particularly in the jewelry segment. Titan’s growth potential and market share in the organized jewelry industry position it for continued success.

Facebook
Twitter
LinkedIn
Telegram
WhatsApp
Email
Note: You have to fill-up above all respective field, then click below button for send your message