Now Reading: Titan shares hit record high on strong Q1 results
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Titan shares hit record high on strong Q1 results
Titan shares jumped 4% to a fresh all-time high of Rs 5,122 on Monday, 10 August, after the Tata Group firm reported a 63% year-on-year jump in consolidated net profit to Rs…
The Story in Brief
Titan shares jumped 4% to a fresh all-time high of Rs 5,122 on Monday, 10 August, after the Tata Group firm reported a 63% year-on-year jump in consolidated net profit to Rs 1,777 crore for the June quarter. Revenue rose 40% to Rs 20,787 crore, driven by 43% growth in its jewellery segment, which accounts for over 80% of revenue. The watches and eyewear businesses also posted strong gains.
Several brokerages raised target prices. Motilal Oswal reiterated a 'Buy' with a target of Rs 6,000, while Citi raised its target to Rs 5,700, according to an Economic Times report cited by Livemint. However, Nuvama downgraded the stock to 'Hold' with a target of Rs 5,241, citing risks from the 10% customs duty on gold. The broader market was flat, with the Nifty 50 up 0.02%, as geopolitical tensions and a sharp fall in SBI shares offset gains in Titan and other stocks.
The Indian Opinion
The euphoria around Titan feels overdone. Running up a stock on 'positive outlook' while a key broker downgrades it to Hold and flags customs-duty risk is classic herd behaviour. The real test is not the target price but whether the jewellery segment can sustain double-digit growth if gold prices cool or duties change. Watch the next quarter's same-store sales. That number will separate narrative from reality.
Sources (2): livemint.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
