Titan, Kalyan Jewellers fall up to 3% despite strong Q2 business update; Tata group stock top Nifty loser

Titan and Kalyan Jewellers will be in focus after their strong Q2 business update. Tata Group's watch-to-jewellery company Titan posted 25 per cent on-year growth on a standalone basis in the September quarter. The company said that during the review period, the jewelry business posted 26 per cent, watches 19 per cent and the eyecare segment posted 6 per cent.

Meanwhile, the company's emerging business clocked 14 per cent growth on-year.

The company's acquired entity Caratlane also posted 28 per cent growth in the review period year-on-year (YoY).

"The Company (standalone) registered a growth of 25% YoY in O2FY25. A total of 75 stores (net) were added during the quarter expanding Titan's combined retail network presence to 3,171 stores," added the company's filing.

Titan's stock last traded weak by over 2 per cent at Rs 3,580, and emerged as the top Nifty loser. in the previous session ended higher by 0.5 per cent at Rs 3,692 per share. The stock in the last one year has delivered just 11 per cent return. 

Brokerage calls on the stock after Q2 business update

Citi has maintained its 'neutral' rating on the stock with the target pegged at Rs 4,110, implying potential gains of over 11 per cent. The brokerage said that investors should watch out for margin trajectory. Also it believes that the decline in solitaire sales/studded mix is likely due to uncertainty around store value to the proposition of diamonds. Further, the jewellery retailer major is currently seeing an environment wherein gold price is soaring whereas diamond price are declining. Likewise, Citi envisages a long-term impact of lab grown diamonds.

Macquarie, meanwhile, has maintained its outperform call on the stock with a similar target of Rs 4,100. The brokerage held that the company's reported better sales ahead of estimates. As per the brokerage better-than-expected jewellery sales and healthy sales growth for watches offset weakness in eyewear and other segments.

Macquarie expects 9 per cent standalone EBITDA growth in Q2.

Kalyan Jewellers Q2 business update

Another jewellery company Kalyan Jewellers for the Q2 period posted 37 per cent year-on-year growth in revenue. Its India business posted 39 per cent growth in revenue, while its Middle East business clocked 24 per cent growth during the review period.

The stock at the last count was down over 4 per cent at Rs 684 per share.