Titan shares jump on strong Q2 growth
Published On: Friday, October 7, 2022 | By: Team KnowMyStock
Shares of Titan Company rallied 6 percent to Rs 2,744.30 on the BSE in Friday’s intra-day trade after the Tata Group firm said its witnessed healthy double-digit growth across most businesses with overall sales growing 18 percent year-on-year (YoY) in the September quarter (Q2FY23). Titan’s mainstay jewelry business has emerged as a shining star during the quarter. Excluding the sale of bullion, jewelry revenues grew by 18% year-on-year, surpassing expectations. Gold jewelry clocked low double-digit growth whereas studded sales were higher than the overall division driven by good activations and better contributions from high-value purchases, the company said. Titan said the outlook for the festive season continues to be optimistic and is visible in positive consumer sentiment across categories.
The watches & wearables segment grew at 20 percent YoY, clocking its highest quarterly revenue. Sales from Titan Eye+ stores saw healthy double-digit growth YoY. But that was offset by lower YoY sales across trade & distribution channels leading to an overall 7 percent YoY growth for the division. Meanwhile, other businesses grew at 58 percent YoY. Analysts said earnings growth visibility for Titan Company remains strong, adding that it has compounded earnings by 20 per cent for an elongated period of time.
Morgan Stanley maintained its ‘overweight’ rating on the stock with a target of Rs 2,902. It said initial Q2 trends are “strong”. Improving studded mix, positive sentiments, and a good festive season outlook are key positives.
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