Shares of jewelery and watchmaker Titan Company dropped nearly 3 per cent on Monday. Brokerages have been positive on the stock following its second-quarter business update.
Titan recorded a 25 per cent yoy growth in the second quarter of FY25.
In its latest stock exchange disclosure, the company said that a total of 75 stores were added during the quarter, expanding its combined retail network presence to 3,171 stores.
Titan’s long-term trend remains positive, but in the current corrective market, there is some profit booking, according to Vaishali Parekh, Vice-President, Technical, PL Capital.
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“The 3,450 level offers solid buying support, with a stop-loss at 3,300 and a projected target of 4,000,” Parekh said.
Domestic brokerage Emkay Global has recommended ‘buy’ rating on Titan Company at a revised target price of ₹4,400.
Global brokerage Macquarie has maintained outperform call on the stock at a target price of ₹4,100 per share, noting that the company has recorded better-than-expected jewelery sales.
Emkay Global said that Titan exceeded its growth expectations across most business segments. It noted that the jewelery segment recorded a significant improvement with 26 per cent growth in the second quarter against 15 per cent expectation and 9 per cent growth in Q1.
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“Q2 outperformance should address investor concerns around potential moderation in growth for Titan and drive a 4-5 per cent increase in our earnings estimates,” Emkay added.
According to the brokerage, the watch segment grew “faster” at 20 per cent against 15 per cent expectation, led by 25 per cent growth in analogue watches and double digit decline in wearables. However, eyewear growth was in line with the brokerage’s expectations at 6 per cent.
Citi has maintained its neutral rating at a target price of ₹4,110, while Investec has maintained a ‘hold’ call at a target price of ₹4,100.
Titan shares closed 2.59 per cent lower at ₹3,575 on the NSE on Monday.
