Shares of Titan Company Ltd. saw a rise of over 1 percent in morning trade on May 4, after the company posted a significant year-on-year jump in standalone net profit for the March quarter of the financial year 2022-23. The standalone net profit came in at Rs 734 crore, a growth of 50 percent from the previous year. The total revenue for the quarter stood at Rs 8,753 crore, an increase of 25 percent from the same quarter last year.
At 10 am, Titan’s stock was trading at Rs 2,683, up by 1 percent from the previous close. Although the stock has remained rangebound over the past six months, down 3 percent, the latest earnings report is expected to give it a boost. The stock is currently trading at a 12-month trailing price-to-earnings ratio of 77x.
Titan’s jewellery segment, which is the company’s largest revenue generator, saw a growth of 24 percent in the March quarter. The watches and wearables segment saw an even stronger growth rate of 40 percent, and the eyecare segment clocked a growth rate of 23 percent. These growth rates have been hailed by industry analysts and brokerages, who are optimistic about Titan’s future performance.
The company’s management also expressed confidence in the earnings report and future prospects. “We are happy to have ended the year with a strong Q4 performance across all our businesses, which have surpassed their pre-COVID levels,” said Titan Company Managing Director C K Venkataraman in a statement.
Analysts have attributed the strong performance to multiple factors, including the reopening of stores after pandemic-related closures, increased consumer confidence, and a successful shift towards online sales. The company has also launched new products and made strategic investments to bolster its growth.
Brokerages have also been bullish on Titan’s performance, with many upgrading their recommendations and raising their price targets for the stock. Motilal Oswal, for instance, has upgraded the stock to a “buy” rating and raised its price target from Rs 2,800 to Rs 3,100. Similarly, ICICI Securities has raised its target price from Rs 2,800 to Rs 3,000 and maintained a “buy” rating.
Overall, the positive earnings report and bullish analyst recommendations have made Titan an attractive investment option for many investors. The company’s strong growth in the jewellery, watches and wearables, and eyecare segments has generated optimism among investors and analysts alike, and the stock is expected to continue its upward trajectory in the coming months.
Titan, the popular Indian consumer goods company, saw a surge in its stock prices on May 4th after posting impressive fourth-quarter earnings for the financial year 2022-23. The company’s net profit for the quarter rose by an impressive 50 percent to Rs 734 crore, compared to the same quarter last year. This growth was largely driven by the company’s strong performance in the jewellery, watches and wearables, and eyecare segments.
Following the announcement, Titan’s stock price gained over a percent in early morning trade on May 4th, with shares trading at Rs 2,683, up 1 percent from the previous close. The stock has remained rangebound over the past six months, down 3 percent, and is currently trading at a 12-month trailing price-to-earnings ratio of 77x.
Titan’s impressive Q4 performance was largely driven by the growth in its jewellery segment, which saw revenues increase by 24 percent year-on-year. The watches and wearables segment also posted robust growth, with revenues rising by 40 percent, while the eyecare segment clocked a 23 percent growth rate.
The jewellery segment’s growth was fueled by the company’s focus on launching new collections, expanding its retail footprint, and ramping up its digital presence. The segment also benefited from a strong wedding season, which boosted demand for gold jewellery in the country.
