Titan shares clinch all-time high after Q3 update; brokerages mixed

Titan Q3 update: After the company’s Q3 business update, foreign brokerages are mixed on the Tata Group’s watch-to-jewellery maker, Titan. Titan Company came up with its business update on January 5 after market hours. Nevertheless, in trade on Monday (January 8, 2024), the stock marked its new all-time high of Rs 3,784.25 in the opening trade, gaining 2 per cent over the previous close.

In the release, the company stated that all its businesses, barring eyewear, saw year-on-year (YoY) growth, while as a whole, it logged 22 per cent growth. The company’s omni-channel jewellery brand Caratlane, however, logged 31 per cent YoY growth.

Last, at around 9:28 am, shares of the company traded 0.78 per cent higher at Rs 3,739.15 apiece on the BSE.

What foreign brokerages say on Titan shares

HSBC

The brokerage has retained its buy call on the Tata Group counter and noted that the 3Q FY24 jewellery sales grew strongly at 23 per cent YoY (c21 per cent 4-year CAGR), ahead of consensus expectations. Other divisions did well too (up 21-24 per cent YoY) except EyeCare (down 3 per cent YoY).

Morgan Stanley

After the update, the brokerage firm has given an equal weight rating to the stock and suggested a target of Rs 3,190, a downside of 14 per cent from the last closing price of Rs 3,710. This is despite the company’s positive growth. Foreign brokerage mentioned that the company witnessed strong jewellery demand trends with 20 per cent plus growth for the fourth quarter in a row, vs general sluggishness in discretionary demand. Also, it reiterated that the company’s gold exchange programs are working out favourably.

The technical indicator RSI of the stock is placed at 68 levels, which is a neutral state.

The Trendlyne data suggests that the consensus recommendation on the stock from 30 analysts is ‘Hold’ with 13 of them suggesting ‘Strong buy’.

The trailing twelve-month price to earnings is at a high of 99.8.