Titan Company Stocks Drops: After the December quarter results, Titan Company shares are seen selling. Today, the share price weakened by about 3 per cent to Rs 1515, while on Wednesday, before the results, it had closed at Rs 1563. In fact, Titan Company’s profits have fallen by 11 per cent on an annual basis. Although there has been a 17 percent growth in revenue. The company saw strong strength in the jewelery business, but a slight weakness in watch and eye wear. Currently, after the results, brokerage houses and experts are giving their opinion about Nivea in shares. Know whether or not you should invest in this favorite stock of veteran investor Rakesh Jhunjhunwala.
Revenue up by 17%
The Titan Company’s revenue has grown nearly 17 per cent year-on-year and in the December quarter it was around Rs 7287 crore. EBITDA grew by 16.7 per cent on an annual basis to Rs 858 crore. PBT also grew by 10 per cent on an annual basis to Rs 740 crore. However, the profit has fallen by about 11 per cent on an annual basis to Rs 419 crore. The company’s EBITDA margin in the third quarter stood at 11.8 percent, compared to 11.9 percent in the third quarter of last year.
Strong in jewelery business
In the third quarter, the company has witnessed tremendous growth in jewelery business. The company’s jewelery sales have increased to Rs 6589 crore as compared to Rs 5409 crore in the third quarter of last year. During this period, the jewelery business debited from Rs 701 crore to Rs 752 crore.
Other business conditions
Sales of watches in the December quarter have been reduced from Rs 625 crore in the third quarter of last year to Rs 550 crore. The debit in this segment has increased from Rs 52 crore last year to Rs 57 crore. Sales of iWare have come down and it has come down from 133 crores to 124 crores. The debit of the iWare business has been Rs 22 crore, in the same quarter a year ago, there was a debit loss of Rs 7 crore in the iware business.
Brokerage House Opinion
Brokerage House Motilal Oswal Recommending investment in Titan Company has fixed the target at Rs 1800. Compared to yesterday’s closing price of Rs 1563, you can get a return of 15 percent. The brokerage says that the company has recovered from the impact of COVID 19 and the business is now on track. The jewelery business has gained strength. The company has a better growth outlook in midterm. If the store expansion continues, there is a positive sign. Management commentary increases trust.
Brokerage House Prabhudas Liladhar It has given a target of Rs 1601, suggesting a hold in the stock. According to the brokerage, if there is a fall in the stock, then one should buy. The brokerage believes that the company’s balance sheet is better, there is good growth in every segment. Further growth is expected to continue due to the company’s brand strength and franchise-based business model. Itself Brokerage House Dolat Capital The company has given a target of Rs 1798, while suggesting to buy the stock.
Credit Suisse Has given a neutral rating in the Titan Company and has fixed the target at Rs 1650. whereas Brokerage House CLSA Has given a sell rating in Titan Company and has fixed the target at Rs 1370.
(Note: We have given advice here based on the company’s quarterly results and brokerage house report. Considering the risk in the market, consult the experts before investing.)