Street cheers Titan’s all-round festive sales, store expansion; CaratLane adds more sparkle

Titan share price zoomed 5 per cent on Friday on sharp buying in morning deals as the Tata Group firm's overall sales jumped 18 per cent year-on-year (YoY) in the September quarter. Titan Stock price opened at Rs 2,685, hitting the day's high at Rs 2,744.30 apiece, gaining nearly 6 per cent.

"The Company witnessed healthy double-digit growth across most businesses with overall sales growing 18% YoY. Retail network continued the pace of expansion adding 105 stores (net) for the quarter," Titan said in an exchange filing.

Titan's jewelry division grew by 18 per cent on a YoY basis on a high base in the second quarter boosted by pent-up demand and "spillover purchases of a Covid disrupted Q1FY22".

“The outlook for the festive season (from Navratri at end Sep'22) continues to be optimistic and is visible in positive consumer sentiment across categories,” the statement added.

Clocking its highest quarterly revenue, Titan's Watches & Wearables division grew 20 per cent, while the Eyecare segment saw healthy double-digit growth. However, the same was offset by lower YoY sales across Trade & Distribution channel, leading to an overall 7 per cent growth for the division.

Titan's Fragrances & Fashion Accessories grew 34 per cent YoY, driven by 37 per cent growth in Fragrances and 29 per cent growth in Fashion Accessories.

Titan's subsidiary CaratLane reported a sharp 56 percent YoY jump in business driven by promotions around Raksha Bandhan and hero launches during the quarter. Across categories, solitaires posted the fastest growth followed by studded and gold jewellery. Studded continued to contribute around 70 per cent of the business despite a larger base as compared to last year, the company said.

At 9.47 am, Titan share price traded at Rs 2,726.45, adding Rs 132.75, or gaining 5.12 percent on BSE. The Tata Group stock has been gaining for the last three days and has risen more than 5.7 percent in the period. It is trading higher than 5, 20, 50, 100 and 200-day moving averages.

So far this year, Titan has surged more than 7.6 percent, outperforming benchmark BSE Sensex by over 8 percent. Meanwhile, the 30-share benchmark Sensex traded 150 points lower at 58,070.