Titan Company’s share price experienced a significant decline of 4.8% on the BSE today, opening at ₹ 3,481.10 against its previous closing price of ₹ 3,535.40. This downturn followed the release of the company’s March quarter financial results, which fell short of market expectations. Titan reported a modest 5% year-on-year (YoY) increase in consolidated net profit to ₹ 771 crore for the quarter that ended on March 31. The total income for the quarter rose by a more substantial 22% YoY to ₹ 11,472 crore, while the company’s EBIT (Earnings Before Interest and Taxes) grew by 10% YoY to nearly ₹ 1,192 crore. A closer examination of the quarterly income reveals a 19% YoY growth in the Jewellery segment, resulting in revenue of nearly ₹ 8,998 crore. In contrast, the ‘Watches & Wearables’ segment recorded a total income of ₹ 940 crore for the quarter. Several brokerages, including Goldman Sachs, Emkay Global, UBS, and Motilal Oswal, have adjusted their target prices for Titan Company stock after considering the Q4 results. Goldman Sachs acknowledged the sustained strong revenue growth but expressed concerns that competitive intensity might limit the company’s potential for margin expansion in FY25. Emkay Global highlighted the healthy 20% growth in the Jewellery segment’s topline but noted that margins were affected by increased competition and a higher gold mix. UBS forecasted a challenging demand environment and anticipated that margins would suffer due to high discounts and offers. Motilal Oswal echoed this sentiment, stating that the near-term growth outlook appeared subdued due to high gold inflation impacting demand sentiments, a common trend during inflationary periods.
Titan Share Price Drops 5% Post Weak Q4 Results
