Analysts said the market was factoring in a muted growth for a few quarters, but an optimistic festive commentary should drive an upgrade in consensus estimates for the jewellery maker.
The stock's average price target, based on 30 analyst estimates, suggests a 6 per cent potential downside, according to the publicly available data with Trendlyne.
Titan Company said that gold jewellery plain clocked low double-digit growth whereas studded sales were higher than the overall division, driven by good activations and a better contribution from high value purchases.
Titan said that the outlook for the festive season continues to be optimistic and is visible in positive consumer sentiment across categories.
The product-mix improved compared to last year but was below pre-pandemic levels. The number of walk-ins grew in the low double digits YoY with steady buyer conversions, Titan said in the post market hours of Friday.
The watch wearables segment grew at 20 per cent YoY, its highest quarterly revenue. The sales from Titan Eye stores saw double-digit growth YoY. There was a 7 per cent YoY growth for the division because of lower YoY sales across the trade distribution channel. Other businesses grew by 58 per cent YoY.
The scrip rose 5.8 per cent to a new high of Rs 2,744 after the development. 30 on the BSE.
Jhunjhunwala, who was fondly referred to as Big Bull and 'India's Warren Buffett, passed away on August 14 at the age of 62. Although the September quarter shareholding data is yet to be released, Jhunjhunwala 3.98 per cent, along with his better half Rekha Jhunjhunwala 1.07 per cent, held 5.05 per cent of the Tata Group company as of June 30. The duo's holding in the company was valued in excess of 12,200 crore at Titan's market capitalization of Rs 2.42 lakh crore in early Friday's session.
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Earnings growth visibility for Titan Company remains strong, according to analysts, who said the company has compounded earnings by 20 per cent for an extended period of time.
Motilal Oswal Securities said that in a note, Motilal Oswal Securities said that the jewellery industry, which is organising at a rapid space, is clearly at the vanguard in terms of growth among organised players.
Motilal Oswal said that Titan's runway for growth is long, with a market share of nearly 6 per cent. It said that Titan's structural investment case is intact, because the competitive intensity from organised and unorganised peers in jewellery is much weaker than other high-growth categories.
The target of the brokerage is Rs 2,970 on Titan.
A strong Q 2 and an optimistic festive commentary should drive an upgrade in consensus estimates, as the Street is currently factoring in muted growth over Q 2 -- Q 4 FY 23 against our expectations of as much as 15 per cent growth, according to Emkay Global.