As per an ET report, in response to the favorable Q3 enterprise updates, HSBC reaffirmed its purchase advice for Titan Firm’s inventory.The brokerage additionally raised the goal value to Rs 4,200, up from the earlier Rs 3,900. HSBC acknowledged the sturdy year-on-year Q3 jewellery gross sales, which exceeded consensus expectations with a 23% development. Nevertheless, it famous a lag within the EyeCare division, whereas different segments carried out nicely. HSBC commented that Titan’s constant and powerful outcomes reinforce its structural enchantment.
Within the October-December interval, Titan Firm witnessed broad-based development in income. The corporate expanded its footprint by including 90 shops, bringing the whole to 2,949 shops, in comparison with 2,859 on the finish of the earlier quarter.
Breaking down the numbers, the jewellery division reported a home development of 21% year-on-year, pushed by double-digit purchaser development and a modest enhance in common promoting costs. Notably, the expansion in gold (plain) and cash outpaced studded gross sales development, reflecting heightened client curiosity in gold regardless of elevated costs and market volatility. Titan actively carried out funding initiatives, together with trade applications and client affords through the festive season, contributing to sustained development. The marriage phase additionally noticed a slight year-on-year enchancment.
Morgan Stanley, whereas sustaining an equal weight stance on Titan, set a goal value of Rs 3,190 post-Q3 updates. Morgan Stanley highlighted the optimistic development in jewellery demand in comparison with the overall sluggishness in discretionary demand. Titan has achieved over 20% development for the fourth consecutive quarter, outperforming the market. Morgan Stanley particularly counseled Titan’s efficient technique of standard gold trade applications.
Regardless of challenges in discretionary demand, Titan Firm has delivered spectacular returns, surpassing 50% within the final 12 months. This outpaces the Nifty, which yielded practically 20% returns throughout the identical interval, establishing Titan as a robust participant out there.
