Titan Company shares hit 52-week high on 20% YoY revenue growth in Q1

Titan Company share price NSE, Titan Company Q1 update: Titan Company shares on Friday gained by as much as 3.2 per cent to clock a 52-week high of Rs 3,210 apiece, surpassing an earlier peak of Rs 3,113.90 touched on July 5 on the NSE. The trend in the stock follows after Titan reported 20 per cent year-on-year (YoY) revenue growth on Tuesday, with all key consumer businesses exhibiting double-digit growth for the quarter ended June 30, 2023, as per the jewellery maker's communiqué. The stock finished at Rs 3,144, up by Rs 37.6 or 1.21 per cent on the NSE.

Part of the Tata Group and started as a joint venture with the TIDCO, Titan said that during the June quarter, the jewellery division's sales grew 21 percent YoY. 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. "Tanishq added a new store in Sharjah, thereby expanding its international presence to seven stores in the GCC region and one store in the US. The domestic new store additions consisted of nine stores in Tanishq and eight stores in Mia by Tanishq," it said.
 
In the watches and wearables division, the company witnessed 13 percent YoY growth, comprising 8 percent growth in the analogue watches segment and 84 percent YoY growth in wearables. "Consumer preferences for premium brands resulted in a good uptick in the average selling price for watches," the company said. Titan added that among key trade channels, Helios chains, Large Format Stores (LFS), and E-commerce clocked higher growth rates compared to others. "Of the 26 new stores added during the quarter, 14 were in Titan World, 9 in Helios, and 3 in Fastrack, respectively," it further said.

Titan's share price target by leading brokerages

• Morgan Stanley has maintained an overweight call on Titan with a target price of Rs 3,207.
• JP Morgan has maintained an overweight rating, with a target price raised to Rs 3,260 from Rs 3,000.
• Citi has continued with a buy call with a target price of Rs 3,280.
• HSBC has maintained a buy call and has raised the target to Rs 3,600 from Rs 3,500.
• Goldman Sachs has maintained a buy call with a target price of Rs 3,175.

Shares of Titan have given a positive return of over 50 percent in the past 12 months. (July 7, 2022)

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