Titan slips 3% after Q3 growth fails to meet Street expectations
Published On: Monday, January 9, 2023 | By: Team KnowMyStock
Shares of Titan Company dropped 3 percent to Rs 2,470.70 in Monday’s intra-day trade, in an otherwise firm market, after Titan Company reported a 12 percent YoY growth in standalone business, with the jewelry segment growing at 11 percent YoY, Watches & Wearables at 14 percent, EyeCare at 10 percent and emerging businesses at 75 percent. Titan Company said it continued to expand its network with 129 store additions for the quarter, taking its total store count to 2,537. The Street had forecast a growth of 17 percent on-year on the back of a strong wedding season. A total of 111 new retail outlets were added in the quarter across businesses, taking the total count to 2,362. Titan's jewelry retail brand Tanishq opened its first international boutique store in the USA in December 2022. The company now has a total of six stores spread across Dubai, Abu Dhabi, and the USA in the overseas market.
“We believe the continued sales momentum across business divisions would have a positive impact on the organized Jewelry," said brokerage Centrum which has remained positive on growth prospects for Titan shares and retains Buy with a DCF-based target price ₹3,115 apiece.CLSA remains bullish on Titan stocks estimating a healthy demand outlook going ahead along with the company's strong execution ability. The company has also continued its network expansion spree with the addition of 129 stores. It has maintained an outperform rating on this counter with a price target of Rs 3,000. It was recommended at a price of Rs 2,538.
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