Titan falls over 2% as development numbers fail to cheer analysts

Shares of Titan Company Ltd fell over 2% on Monday after the corporate stated its general standalone enterprise grew at 12% for the quarter ended December 2022. 

Analysts say Titan’s valuations are excessively excessive and development has slowed down.

On Friday, the corporate reported its third quarter ended December 2022 (Q3FY23) replace with double digit development throughout all divisions. Revenue for the jewelry division grew 11% on 12 months with studded class reasonably outpacing plain gold jewelry.

The watches division registered 14% on 12 months development led by robust traction in wearables phase. The firm added greater than 110 shops throughout divisions taking complete retailer depend to 2,362 shops. Emerging enterprise, which incorporates fragrances and Indian put on grew 75% on 12 months led by 121% development in Taneira model.

“Despite a decent Q3 business update from Titan the outlook remained cautious while the street was expecting a 15% plus growth during festive season but reported a 12% growth in combined sales year-on-year across standalone businesses which is below expectations,” stated Prashanth Tapse, analysis analyst, senior vp analysis, Mehta Equities Ltd.

View Full Image

Titan Co – Last 5 buying and selling periods of the inventory

Technically, the inventory is underneath stress from the final 4 buying and selling periods, and looking out on the chart pattern it may well take a look at under 2,450 degree within the close to time period.

According to international brokerage, Morgan Stanley, the preliminary Q3 traits have been barely weaker than anticipated, and the expansion was slower within the second half of the 12 months versus first half of the quarter. The brokerage has maintained ‘obese’ ranking on the inventory.

“Prima facie, the growth trajectory appears to have moderated but we believe the growth rate should be viewed in the context of a very strong base of Q3FY22,” stated brokerage ICICI direct analysis in its report.

Brokerage Macquarie has maintained ‘outperform’ ranking on the inventory, and raised FY23/24/25 estimates earnings per share (EPS) by 2% every to replicate gross sales power throughout segments.

Similarly, brokerage CLSA too has maintained ‘outperform’ ranking for the inventory on the again of 12% development in general income versus estimate of 13.4% development.

According to Mintgenie ballot, 30 analysts advocate ‘buy’ ranking for the inventory.

View Full Image

What is valuation

Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less