Morgan Stanley downgrades Titan; heres why the brokerage is cautious on stock
Titan share price NSE, Titan share price target: Titan Company shares on Monday slipped as much as nearly 4 per to touch the days low of Rs 3,030.25 from the previous close of Rs 3,144 on NSE.
Titan share price NSE, Titan share price target: Titan Company shares on Monday slipped as much as nearly 4 per cent to touch the day's low of Rs 3,030.25 from the previous close of Rs 3,144 on the NSE. The stock took a beating after global brokerage Morgan Stanley downgraded the stock to equal weight with a target price of Rs 3,207.
As per the global investment bank, high gold prices are likely to impact discretionary consumption. The business growth momentum is likely to slow down a bit in the next couple of quarters. The demand will be affected due to the extra month (Adhik Maas) in the Hindu calendar and the delayed Diwali. However, Morgan Stanley continues to view Titan as an attractive business over the long term. The counter finished at Rs 3,052, down by 2.93 per cent on the NSE.
The counter clocked a new 52-week high of Rs 3,210 apiece, surpassing an earlier peak of Rs 3,113.90 touched on July 5 on the NSE on Friday, July 7, after Titan reported 20 per cent year-on-year (YoY) revenue growth, with all key consumer businesses exhibiting double-digit growth for the quarter ended June 30, 2023, as per the jewellery maker's communiqué.
During the June quarter, Titan's jewellery division's sales grew 21 per cent year over year. Titan said, "Buyer growth was higher than average ticket size growth for this period." Despite significant volatility in gold prices throughout the quarter, Akshaya Tritiya sales in April and wedding purchases in June were robust." Titan added 68 stores, including CaratLane, taking Titan's retail presence to 2,778 stores during the quarter. Read more
Titan share price history
Part of the Tata Group and started as a joint venture with TIDCO, Titan has given a positive return of over 40 per cent in the past 12 months (July 11, 2023).
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