Titan Company share value fell more than 5 per cent to Rs 1,416.60 apiece in intraday bargains on BSE on Monday. Rakesh Jhunjhunwala’s preferred Titan stock value traded in the red for the third consecutive day soon after the enterprise announced its Jan-March quarter earnings. Titan Company’s margins have been impacted in the period below assessment due to reversal of salary cuts made in the initial quarter of FY21, decrease proportion of studded sales, and reduction in gold import duty. The stock was the top rated Sensex loser. Ace investor Rakesh Jhunjhunwala lowered his stake to 3.52 crore shares or 3.97 per cent, at the finish of March quarter, from 3.75 crore shares or 4.23 per cent stake in Titan Company in December quarter, according to the shareholding pattern of the public shareholders.
Research and brokerage firm Motilal Oswal Financial Services has provided a ‘buy’ rating to the stock with a value target of Rs 1,785 apiece, a rally of more than 25 per cent. It mentioned that as opposed to other discretionary peers, Titan can claw back some of this lost demand. “This is because the underlying demand remains robust, led by decline in gold prices and strong wedding demand. Despite 62 per cent on-year sales decline in the first quarter, it ended up reporting positive sales growth in FY21,” analysts mentioned.
Titan Company reported a total revenue of Rs 7,169 crore in Jan-Mar quarter, which includes sale of gold bullion to the extent of Rs 25 crore, compared to the revenue of Rs 4,469 crore for the very same quarter in the preceding year. The development in total revenue excluding bullion sale was 60 per cent. The enterprise mentioned that the jewellery division ran a diamond studded promotion in the quarter and that led to very good recovery of the studded segment of the enterprise. “However, the studded ratio continued to lag the previous year and with gold coins sales continuing to remain very high, margins in the Jewellery business continued to be under pressure,” Titan Company mentioned.
Analysts at Emkay Global Financial Services have maintained a ‘buy’ rating to Titan Company stock. It believes that close to-term weakness on lockdowns delivers entry possibilities. “Strong earnings run rate in H2FY21 offers visibility of the likely earnings recovery in FY22 on full unlocking. We maintain FY22/23 estimates assuming a mild lockdown impact, which will likely be offset by pent-up demand,” they mentioned. Titan Company remained Emkay Global’s preferred choose in the discretionary space, providing a more quickly development outlook. The brokerage firm has pegged a value target of Rs 1,725, implying a get of more than 21 per cent.
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