Titan shares nosedive 7% after Q4 results; should you buy or sell? Know brokerage targets

Titan Company share price: Titan Company shares on Monday, May 6, declined more than 7 per cent after the company released its fourth-quarter results for the financial year 2024. Titan's shares closed at Rs 3,281.65 each, down 7.18 per cent on BSE today and its market capitalisation (mcap) got eroded by Rs 22,527.56 crore to Rs 2,91,340.35 crore.

The Tata group's jewellery and watchmaker did not meet analysts' expectations in its quarterly results.

Titan's Q4FY24 results

Bengaluru-headquartered Titan Company reported a 7.1 per cent year-on-year (YoY) rise in net profit to Rs 786 crore and a 16 per cent increase in revenue to Rs 11,257 crore in Q4FY24.

The company's quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 6.2 per cent to Rs 1,109 crore but the margin contracted by 90 basis points to 9.9 per cent. 

According to Zee Business research, Titan's March-quarter net profit was estimated at Rs 767 crore, revenue at Rs 11,354 crore, EBITDA at Rs 1,177 crore, and margin at 10 per cent. Read More 

Should you buy or hold?

The stock emerged as the biggest laggard on both the BSE Sensex and NSE Nifty today, May 6. Here's what brokerages suggest:

Brokerage CLSA has maintained a 'buy' rating on the Titan stock and has cut the target price by Rs rs 277 to Rs 4,270.

Goldman Sachs has also maintained a 'buy' call on the stock and cut the target from Rs 4,075 to Rs 3,950.

On the other hand, Jefferies suggested to 'hold' the stock for a target price of Rs 3,600.

Meanwhile, Morgan Stanley has maintained 'equalweight' and raised Titan's target to Rs 3,526 from Rs 3,290.

Citi has maintained a 'neutral' rating and cut the target price to Rs 3,650 from Rs 3,850.