Titan’s Share Price Dips 2% Amidst Q2FY24 Updates

Titan's Share Price Dips 2% Amidst Q2FY24 Updates

VoM News Desk | October 9, 2023 | 01:24 PM IST | Breaking News | Follow on Google News

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.

VoM News Desk

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