Titan clocks a gain

Titan Company is right there among the top five gainers on the BSE since the opening bell today and that too after a Q3FY23 earnings which missed most estimates.

On a 13% (YoY) rise in consolidated total income at Rs.11,383 crore, the company’s PAT came in 10% lower at Rs.913 crore.

EBIT was down 6% at Rs.1324 crore while margins slipped 232 bps to 11.6%.

Where 90% of its total revenue comes from the jewellery segment, it showed a lacklustre 15% growth (excluding bullion, it was 12.5% growth) despite being the festive and wedding season.

In terms of its other segments, Watches and wearables business showed a 14% rise in revenue, eyecare grew 11.5%, , fragrances and fashion accessories showed a good 59% rise .

The stock price rose over 5% today to Rs.2424.50 and is now trading at Rs.2400, up some 4%. Its 52-week high is at Rs.2790.

Despite the disappointment, most brokerage houses have maintained their ‘buy’ call on the stock as the outlook for the quarters ahead remains optimistic, giving a fall in the price as an opportunity to enter; that explains why the stock bounced back after the blip yesterday.