TITAN Share Price: In the first quarter of the financial year 2024, the standalone net profit of Titan Company decreased by 2% annually, amounting to 777 crores INR, compared to 793 crores INR in the same quarter last year. The jewelry segment of the company maintained a margin of 10%. After Q4FY21, this time the jewelry margin was observed at the lowest level. The margins for watches and wearables remained at 11.5%. The revenue of the eyewear segment increased by 11%, and the margin stood at 17.2%. Different brokerage houses have provided their target prices for the company’s stock.
- Jefferies has given a “hold” rating for Titan, setting a target of 2650 INR per share. They mention that the margin in the first quarter was surprisingly negative, leading to a sharp decline in earnings compared to estimates. The focus on margin at the cost of growth through cost-cutting measures may not be repeatable. However, the margin guidance for the jewelry business remains intact for the entire year. The management stated that the margin pressure is not due to competitive reasons, and there is hope for an increase in the watch segment’s margin.
- HSBC has given a buy rating for Titan, setting a target of 3580 INR per share. They highlight the strong sales in the jewelry segment and the strategy to boost low EBIT margin growth. The company’s FY24 guidance is maintained at 12-13%.
- Morgan Stanley has given an equal-weight rating for Titan, with a target of 3190 INR per share. They mention that the earnings for Q1 were 15% lower than estimated due to weaker jewelry EBIT margins. The management remained optimistic about the near-term and medium-term outlook. Given the strong trailing performance and relative valuation, the brokerage has given an equal-weight rating.
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