• December 4, 2021

Titan share price slips 2% post Q1 results; here’s what brokerages say

The company posted a consolidated profit of Rs 18 crore for the June quarter compared to a net loss of Rs 297 crore in the corresponding period of the preceding fiscal

Shares of Titan Company Limited declined 2 per cent after the Tata group firm reported its June quarter earnings.   The company posted a consolidated profit of Rs 18 crore for the June quarter compared to a net loss of Rs 297 crore in the corresponding period of the preceding fiscal.   Total income during the quarter stood at Rs 3,519 crore. It was Rs 2,020 crore earlier, Titan said in a regulatory filing.   The stock opened 1.22 per cent higher at Rs 1821.95 against the previous close of Rs 1799.80. However, it shed all its early gains and slipped in the red. Market cap of the firm fell to Rs 1,59,353.18 crore on BSE.

It has gained 62 per cent in the last year and risen 14.5 per cent since the beginning of this year. The share stands higher than 50 day, 100 day, and 200 day moving averages and lower than 5 day, 10 day, 20 day moving averages.   The company said its higher revenue in the first quarter of the current fiscal was primarily driven by the base effect of zero sales in April last year.

 Titan Company Managing Director C K Venkataraman said, “While we started the quarter with strong business momentum, the second wave of the pandemic severely disrupted it and we quickly shifted our priorities to health and safety of our employees, business associates and customers.”   “We have downward revised FY22E EPS estimates to Rs 19.5 (-5.4%) to factor in Q1FY22 performance. However, we have maintained our FY23E EPS estimates as we believe that all segments would improve performance with the opening of markets. We maintain Buy, with a revised target price of Rs 1,925 (65x FY23E),” said Dolat Capital   The brokerage house expects an improvement in sales growth going ahead.

Higher growth in the jewellery segment would be driven by pent-up demand as stores were operational for a very limited time/closed during Q1FY22 and buying ahead of the festive season.   “We remain positive on the long-term structural story on account of market share gains, strong balance sheet, franchisee based model, strong brand, and strong head start in executing strategies like customer safety and Omni Channel across product segments. Foray into the US will long-termong term growth potential.

We maintain ‘ACCUMULATE’ with DCF based target price of Rs 1916 (Rs 1869 earlier). Possibility of 3rd Covid wave during festival season is a key near term risk to our call,” said Prabhudas Lilladher

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