Titan Company’s share price fell 2% today, a day after the company said its fiscal first quarter net profit fell 4.3% on-year, as weak margins offset revenue growth. Earlier yesterday, Titan reported a net profit of Rs 756 crore for Q1FY24; this was on revenue from operations of Rs 11,897 crore – up 26% on-year. Brokerages offered mixed reviews on the scrip following its quarterly results. Titan Company’s shares fell 2.55% in the last 5 days and 4.16% in the last one month, while it soared 18.22% in the last 6 months.
Should you buy, sell or hold Titan stock?
Emkay: Hold – Target Price: Rs 3,000
“In our view, Street’s margin estimate will now gravitate to the lower end of the guided band on Q1 disappointment and high competitive intensity/hallmarking. While we stay confident on market share gains, on TTAN’s cross-functional strengths and incremental growth potential from International, Taneira and Handbags, we retain HOLD on near-term margin uncertainty. We reduce our Target Price by 5% to Rs 3,000 (54x Sep-25E EPS) on a 6-8% earnings cut and 3M rollover.”
Nuvama: Buy – Target Price – 3,425
“While Titan’s jewellery margins have been volatile quarter to quarter, it achieved a 13% average over FY19–23 (ex-FY21). We are trimming margins, but keeping it in the lower end of guidance (12.5%); our FY24 EPS hence edges down only 4%. We value Titan at 60x Q1FY26E PE (5Y average) with a Target Price of Rs 3,425. Titan remains among our top picks.”