A day after releasing its quarterly update, the brokerage firms are sceptical about Titan stock. The company on Tuesday said that the second wave of covid is a setback for the FY22 business plan.

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The Tata Group company Titan has said the second wave of Covid proved to be a setback for its financial year 2022 business plans that were made with a lot of ambition, substantial excitement, and passion.

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The company in filing to exchanges, however, said it is moving ahead with "calmness and composure" and is confident of overcoming all the challenges.

In this regard, CLSA maintains a Sell call on Titan and downgrades the target to Rs 1,370 per share from Rs 1760.9 apiece previous close. It said, Titan had muted top-line recovery YoY hindered by the second wave of Covid-19. It adjusted for bullion sales, and overall sales are expected up 51 per cent.

Similarly, Morgan Stanley maintains an equal-weight call on Titan shares and also downgrades the target to Rs 1,358 per share. The brokerage says the jewellery sales up 37 per cent as compared to the first wave of covid, as well as non-jewellery business saw a rapid recovery in walk-ins on re-opening.

In its annual report for FY2021-22, the company said it is expecting that by September 2021, much of the country will be vaccinated, paving the way for some kind of normalcy in the business environment.

The second wave of COVID-19 has come and caused a setback to those plans, but without taking away the medium-term opportunities and the advantages that those plans represented," its report commented in terms of the outlook of the company for this ongoing fiscal.

The counter on Tuesday closed around one per cent higher to Rs 1763.30 on the BSE, as compared to a 0.04 per cent fall in the S&P BSE Sensex on Tuesday.