- Titan reported sturdy March quarter earnings because of wholesome shopper demand throughout the wedding ceremony season.
- The administration indicated good potential demand in Might and June as a result of one other upcoming wedding ceremony season.
- Brokerages anticipate the share value of India’s largest branded jewelry maker to rise as much as ₹21%, with most of them recommending to purchase the inventory.
Shares of Titan rose 1.5% on Thursday after it reported sturdy March quarter earnings. The outcomes have been according to analysts expectations, because of wholesome shopper demand throughout the January to March wedding ceremony season.
The administration additionally indicated good potential demand in Might and June due one other upcoming wedding ceremony season.
Titan boasts of an impressive monitor report that surpasses its friends, with superior short-term development prospects, and distinctive long-term development potential, all of which justify its excessive valuations, stated analysts at Motilal Oswal.
Titan reported a 50% on yr development in its standalone This fall web revenue to ₹734 crore. For the total FY23, Titan’s web revenue rose almost 53% to ₹3,333 crore because of the low-base impact of FY22.
Aided by wedding ceremony season demand, Titan’s income from operations throughout the quarter grew 33% on yr to ₹9,704 crore, whereas for the total FY23, the income grew 40.7% to ₹38,270 crore.
The corporate highlighted that demand was impacted in March as a result of value volatility in gold, which continued into the primary half of April, however turned strong once more after Akshay Trithiya.
The following two months are anticipated to deliver sturdy demand given the upcoming wedding ceremony season, with the next variety of wedding ceremony dates.
“To be truthful, gold-price volatility does have its impression on shopping for behaviour however consumer-spending continues to be fairly sturdy when there are events to take action, and a promising wedding ceremony calendar for Might-June is probably going indicator for the months forward,” stated a report by JM Monetary.
Its worldwide enterprise can also be performing properly. At present, there are six shops within the UAE and one within the US. The corporate plans to increase to 25 worldwide shops in FY24 with many shops within the GCC area. In addition to, it’s concentrating on a further 40 shops in India this yr.
The corporate opened its first Tanishq retailer within the USA and a Titan Eye+ retailer in Dubai this yr. It opened 12 new shops of Tanishq, 18 of Mia and one in all Zoya throughout the quarter respectively.
Titan’s general retailer rely got here in at 2,710 throughout 404 cities on the finish of March 2023.
“The outlook stays strong. Titan has ample alternatives for development, given its market share of sub-10% in jewellery and the continuing challenges confronted by its unorganized and arranged friends. Its medium-to-long-term earnings development potential is unparalleled,” stated analysts at Motilal Oswal.
Brokerages anticipate the share value of India’s largest branded jewelry maker to rise as much as ₹21% with most of them recommending a ‘purchase’ on the inventory.
|Kotak Institutional Equities
|Nuvama Institutional Equities
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