In Short:
Titan Company Ltd’s shares were among the biggest losers on the Nifty 50 on Monday, despite a positive outlook from brokers after a strong second-quarter report, showing a 25% year-on-year growth. The company added 75 stores, boosting its total to 3,171. While profit booking is occurring, analysts like Emkay Global and Macquarie set target prices around ₹4,100-₹4,400, praising strong jewellery sales.
Titan Company Ltd: Navigating Early Trading Volatility
In the bustling world of the **Nifty 50**, shares of the renowned jewellery and watchmaker **Titan Company Ltd** found themselves among the top losers during early trading on Monday. Despite this dip, analysts are singing a different tune, casting a positive light on the stock thanks to its impressive second-quarter business update.
Impressive Growth in Q2 FY25
The latest figures reveal that **Titan** has achieved a remarkable 25% year-on-year growth in the second quarter of FY25. This exceptional performance has caught the eye of investors and market watchers alike.
Expanding Retail Presence
In a recent stock exchange announcement, **Titan** disclosed the addition of 75 new stores during the quarter, elevating its total retail network to an impressive 3,171 locations across the country.
Market Insights
While Titan’s long-term trajectory appears promising, the current market correction has led to some profit-taking. According to **Vaishali Parekh**, Vice President of Technical at **PL Capital**, the stock may find robust support at the 3,450 level, suggesting a stop-loss at 3,300 with an ambitious target of 4,000.
- Also read: F&O Strategy: Buy Titan Call Option
Brokerage Recommendations
Domestic brokerage **Emkay Global** has issued a ‘buy’ rating for **Titan Company**, revising its target price to an attractive ₹4,400. Meanwhile, global brokerage **Macquarie** continues to maintain an outperform rating, setting a target price of ₹4,100 per share, particularly praising Titan’s better-than-expected jewellery sales.
**Emkay Global** also highlighted that Titan has surpassed growth expectations across most of its business segments, especially noting a standout 26% growth in the jewellery sector during the second quarter—exceeding the expected 15% and following up with a 9% growth in Q1.
- Also read: IRTH, the bag brand from the House of Titan, has made its retail debut by launching its first store in Mumbai.
According to **Emkay**’s insights, the robust Q2 performance should alleviate concerns among investors regarding any potential slowdown in Titan’s growth, prompting an increase in earnings estimates by 4-5%.
Segment Growth Highlights
Looking at the individual segments, the watch category outperformed with a remarkable 20% growth, surpassing initial expectations of 15%. This surge was primarily driven by a significant 25% growth in analogue watches, although wearables faced a slight decline.
On the contrary, the eyewear segment aligned with expectations, achieving a modest 6% growth.
Current Market Performance
As of 11:17 AM, **Titan** shares were trading at ₹3,585.60, reflecting a decrease of 2.30% on the NSE.
In summary, while early trading may have been tumultuous for **Titan Company Ltd**, the positive outlook from analysts and robust sales figures suggest that there’s still a bright future ahead for this iconic brand.
