Titan share price falls over 7% after Q4 results; should you buy, sell, or hold the stock?

Titan Firm This autumn end result

After market hours on Friday, Might 3, Titan reported a 5 per cent year-on-year (YoY) rise in consolidated web revenue of ₹771 crore for the quarter that ended on March 31, 2024. Whole revenue for the quarter rose 22 per cent YoY to ₹11,472 crore.

The corporate’s EBIT for the quarter grew by 10 per cent YoY to just about ₹1,192 crore.

The Jewelry phase’s complete quarterly revenue grew 19 per cent YoY to just about ₹8,998 crore, whereas ‘Watches & Wearables’ complete revenue for the quarter stood at ₹940 crore, up 8 per cent YoY.

Additionally Learn: Titan Outcomes Updates: Internet revenue rises 7% YoY to ₹786 crore, declares dividend of ₹11 per share

Titan share value motion

By leaping practically 29 per cent, Titan shares have outperformed the fairness benchmark Sensex over the past 12 months, which has gained about 21 per cent in the identical interval.

Titan Firm share value hit its 52-week excessive of ₹3,885 on the BSE on January 30 this 12 months. Its 52-week low stage is ₹2,666.55, which it hit on Might 5 final 12 months. For the present calendar 12 months, until Might 3 shut, Titan share value is down about 4 per cent.

Additionally Learn: Can Titan retain its sparkle amid rising gold costs, competitors?

Must you purchase, promote, or maintain the inventory?

Prime brokerage corporations have retained their earlier advice on Titan inventory, however some have trimmed their estimates as a consequence of gold inflation and the inventory’s truthful valuation. Let’s check out what a few of them say:

Motilal Oswal Monetary Companies

Motilal maintained a purchase name on Titan inventory with a goal value of ₹4,100. It mentioned Titan stays its high shopper discretionary play in India. Nonetheless, the brokerage agency reduce its earnings per share (EPS) estimates by 6 per cent and 5 per cent for FY25E and FY26E, respectively.

The brokerage agency believes the near-term progress outlook of Titan seems subdued as a consequence of excessive gold inflation affecting demand sentiments. This, nonetheless, is a typical pattern throughout inflationary durations.

“Regardless of the near-term jitteriness, the corporate stays aggressive in its progress outlook, pushed by new retailer additions, enticing designs, and market share positive aspects, et al. Titan additionally maintains a Jewellery EBIT margin of 12-13 per cent for FY25. We’ll monitor the near-term consumption pattern,” Motilal mentioned.

Motilal underscored that Titan is on observe to realize the present jewelry income steering of two.5 instances FY22 income by FY27, implying a formidable 20 per cent CAGR throughout the interval.

The brokerage agency believes with a present market share of practically 8 per cent in a large practically ₹5 lakh crore market, there’s vital headroom for progress for Titan.

Additionally Learn: Shares to purchase: Dr Reddy’s Lab, Cipla amongst 9 shares that may rise 6-15% in subsequent 3-4 weeks; do you personal any?

Kotak Institutional Equities

Kotak has an add name on Titan inventory with a revised truthful worth of ₹3,600 from ₹3,750 earlier. It has trimmed the FY25/26E consolidated jewellery EBIT margin estimate by 90-110 bps and reduce EPS estimates by 5-8 per cent.

“We increase FY25-26E jewelry gross sales progress by 2 per cent and scale back jewelry EBIT margin by 90-110 bps; web end result: 5-8 per cent EPS reduce. We estimate a 17 per cent consolidated jewelry gross sales CAGR over FY2024-27E, led by (1) a 15 per cent home CAGR on practically 9 per cent retailer CAGR, (2) a 70 per cent CAGR in worldwide enterprise and (3) a 30 per cent CAGR in Caratlane,” mentioned Kotak.

“We worth Titan at 60 instances June 2026E PE (price-to-earnings ratio). The inventory is priced for perfection; we’d keep watch over the adoption of lab-grown diamonds in India (and Titan’s studded share) and Aditya’s Birla Group’s upcoming jewelry foray,” Kotak added.

JM Monetary

JM Monetary maintained its purchase name on the inventory however reduce the goal value to ₹3,825 from ₹3,940, citing Titan’s March-quarter earnings had been under expectations.

“Income was inline, however decrease margin throughout segments (weaker gross margin in jewelry and the shortage of working leverage in different segments) drove an total practically 3 per cent miss on phase income. The efficiency of the watches and eyewear segments has been unstable, and extra work is required earlier than it reaches a gentle state,” JM Monetary mentioned.

The brokerage agency believes progress and margin will seemingly be impacted within the close to time period as a consequence of volatility in gold costs, elections and decrease marriage ceremony dates.

Nonetheless, JM Monetary identified that for the total 12 months, Titan will goal sustaining its jewelry division progress momentum and it reiterated 12-13 per cent margin steering.

Additionally Learn: Titan had simply 3 CEOs in 40 years. Who would be the fourth?

“Titan inventory may react negatively to weak This autumn outcomes and near-term demand points. From the long-term perspective, contemplating a big alternative measurement and Titan’s superior execution capabilities, headroom for progress stays sturdy,” mentioned JM Monetary.

Learn all market-related information right here

Disclaimer: The views and proposals above are these of particular person analysts, consultants and broking firms, not Mint. We advise buyers to verify with licensed consultants earlier than making any funding choices.

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Revealed: 06 Might 2024, 09:22 AM IST