Titan gains on posting a strong performance in Q4

8 Apr 2024 , 01:11 PM

Titan Company shares rose more than 1% to ₹3,808 on April 8 as brokerages remained upbeat following the Tata Group firm’s strong performance in the fourth quarter of FY24, which included considerable revenue growth and the expansion of its retail reach.

Titan’s income increased by around 17% year over year. The acquisition of 86 shops increased the company’s retail network to 3,035 locations. Analysts expect Titan stock to rise to 20% from its April 5 closing price.

With a robust pace of growth momentum and a focus on enhancing wedding sales contribution in the south, the brokerage is optimistic about Titan, maintaining a ‘buy’ rating and a target price of ₹4,255 per share, representing a 58.1x FY26 EPS.

Titan reported a spectacular 19% rise in its India Jewellery sector, which contributed to higher topline growth. In the jewellery business, both buyer and same-store sales increased by double digits. Watch sales, however, increased by 6% year on year, following a substantial 21% increase in the preceding quarter.

Titan’s eyecare revenue, albeit down 1% from the prior year, represents a consistent five-year CAGR of 5%, comparable to Q3. Emerging enterprises expanded by 24% year on year, with Caratlane sales increasing by 30%. Following the positive business report, Morgan Stanley has maintained Titan’s ‘equal-weight’ rating with a target price of ₹3,290 per share.

The developing business area is forecast to increase at a strong 24% year on year, with Caratlane’s revenues increasing by 30%. Titan is rated ‘buy’ by an international firm, with a target price of ₹4,574 a share.

At around 12.40 PM, Titan Company was trading at ₹3,757.30 per piece, against the previous close of ₹3,754.45 on NSE. The counter touched an intraday high and low of ₹3,808.30 and ₹3,720.35, respectively.

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