Titan Company Faces Stock Price Decline Following Q4 Results

Shares of Titan Company experienced a more than 7% drop in their share price during morning trading on the Bombay Stock Exchange (BSE) in response to the company’s Q4 financial results.

The stock opened at ₹3,481.10, a decline from the previous close of ₹3,535.40, and fell to ₹3,287, reflecting a 7% decline.

By 10:15 am, the stock traded at ₹3,332, down by 5.75%, while the Sensex was showing a growth of 0.30% at 74,096.

Following the release of its March quarter results, Titan reported a 5% year-on-year increase in consolidated net profit to ₹771 crore.

Total income for the quarter saw a 22% rise to ₹11,472 crore, with EBIT growing by 10% to nearly ₹1,192 crore.

In the Jewellery segment, total income increased by 19% to ₹8,998 crore, while ‘Watches & Wearables’ reported total income of ₹940 crore, up by 8% year-on-year.

Over the past year, Titan shares have surged by approximately 29%, outpacing the Sensex’s gain of about 21% in the same period.

The company’s 52-week high on BSE was ₹3,885, achieved on January 30, with the low at ₹2,666.55 recorded on May 5 last year.

Several brokerage firms have maintained their recommendations on Titan shares but have adjusted earnings estimates due to gold inflation and stock valuation concerns.

Some notable firms like Motilal Oswal retained a ‘Buy’ rating with a target price of ₹4,100, lowering EPS estimates for FY25E and FY26E by 6% and 5%, respectively.

Kotak has an ‘Add’ call on the stock with a revised fair value of ₹3,600 and cut FY25/26E consolidated jewellery EBIT margin estimate by 90-110 bps.

Analysts at JM Financial also maintained a ‘Buy’ rating while reducing the target price to ₹3,825 from ₹3,940, citing underwhelming March-quarter earnings.

The company’s Q4 results have highlighted uncertainties in the near-term growth and margin due to various factors like gold price volatility and lower wedding dates.