Now Reading: Titan shares hit new high after Q1 profit jumps 63 per cent
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Titan shares hit new high after Q1 profit jumps 63 per cent
Shares of Titan Company jumped 4 per cent to a fresh all-time high of ₹5,122 on Monday after the Tata Group firm reported a 63 per cent year-on-year rise in consolidated net…
The Story in Brief
Shares of Titan Company jumped 4 per cent to a fresh all-time high of ₹5,122 on Monday after the Tata Group firm reported a 63 per cent year-on-year rise in consolidated net profit to ₹1,777 crore for the June quarter. Revenue from operations climbed 40 per cent to ₹20,787 crore, driven by the jewellery segment which accounts for over 80 per cent of sales and recorded 43 per cent growth.
Following the results, Citi maintained its 'Buy' rating and raised its target price to ₹5,700 from ₹5,075, implying an upside of about 15 per cent. The brokerage said jewellery revenue and EBIT growth stayed strong despite excluding bullion sales. However, Nuvama downgraded the stock to 'Hold' from 'Buy' with a revised target of ₹5,241, citing limited upside after the recent rally and risks from potential changes in gold import duty.
The Indian Opinion
Titan's strong Q1 numbers and bullish analyst upgrades are cheering the market, but the mixed signals from brokerages, Citi raising its target while Nuvama downgrades to 'Hold', show the stock is no consensus buy. The big uncertainty remains gold import duty policy: a cut could squeeze margins, while a hike might hit demand. Investors should watch the upcoming festive season for a real test of consumer appetite. Until then, the stock's valuation at 60x forward earnings leaves little room for error.
Source: livemint.com
This story was synthesised by AI from the source linked above.
