The shares of jewellery and other wearables retailer Titan Ltd. jumped 5% in the early hours of trading on Friday. As of 12:00 noon, the stock was trading at Rs. 2,721, up Rs. 128 for the day. This comes on the back of strong year-on-year (YoY) growth of 18% that the company achieved for the quarter ending September (Q2FY23).
One of the picks of the late ace-investor Rakesh Jhunjhunwala, Titan is the country’s largest jewellery retailer. It sells jewellery, watches, and wearables through its Tanishq, Zoya, Mia, Caratlane, Fastrack, and Sonata brands.
Titan updated on its jewellery division, “The company witnessed healthy double-digit growth across most businesses with overall sales growing 18 per cent YoY.”
The double-digit growth figure is also impressive because it comes on a higher base of last year’s September quarter results because of pent-up demand.
As for its other divisions, watches & wearables grew by 20% registering its highest quarterly revenue. Titan Eye stores clocked double-digit growth but it was offset by weaker sales for its trade and distribution channel translating into overall 7$ growth for the segment. The fragrances and fashion accessories division increased by 34% YoY for the quarter.
Shares of Titan have given an impressive return of more than 40% in the last three months since July. The stock used to trade around Rs. 1,945 levels during early July.
The next two quarters are expected to go better for the company as the festive season is around the corner. Eying more growth ahead, the analysts at ICICI Direct have given a buy rating on the stock with a target price of Rs. 3,080. This results in an upside of 10% from the present levels.
Written by Vikalp Mishra
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