Shares of Titan Company jumped over 3 per cent in Friday's trade post the Tata group firm's June quarter update, with key public shareholder Rekha Jhunjhunwala, the wife of late seasoned investor Rakesh Jhunjhunwala, seeing nearly Rs 500 crore jump in notional value on her 5.29 per cent stake in the jewellery maker.
Titan Company shares climbed 3.39 per cent to hit a fsh record high of Rs 3,211.10 within minutes into trading. Titan Company commanded a market capitalisation of Rs 2,85,077 crore at all-time high level, up Rs 9,357 crore from Rs 275,720 crore in the previous session. Jhunjhunwala made Rs 494 crore worth notional gains on her 5.29 per cent stake in Titan Company. Her holding in the stock was worth Rs 15,080.57 at record levels, data compiled from corporate database AceEquity suggests.
Earnings growth visibility remains strong for Titan Company, said Motilal Oswal Securities, noting that the Tata group firm has compounded earnings by 20 per cent for an elongated period.
"It has ample opportunities for growth, given its sub-10 per cent market share in Jewelry and the ongoing challenges faced by its unorganised and organised peers. Its medium-to-long-term earnings growth potential is unparalleled. We have a Buy rating with a target of Rs 3,325," Motilal Oswal said.
Titan clocked sales growth of 20 per cent YoY, with double-digit growth across all key businesses. It added 68 stores for the June quarter, taking its total retail presence (including CaratLane) to 2,778 stores at the end of Q1FY24.
Titan said jewellery division delivered a satisfactory performance, growing 21 per ent YoY in the June quarter. Buyer growth was higher than average ticket size growth for this period, it said.
Despite significant volatility in gold prices throughout the quarter, Akshaya Tritiya sales in April and wedding purchases in June were robust, Titan added.
"The key categories of gold and studded grew well with no notable change in the overall product mix. New store additions, golden harvest and exchange programs continued to do well during the quarter. Tanishq added a new store in Sharjah thereby expanding its international presence to 7 stores in GCC region and 1 store in USA. The domestic new store additions consisted of 9 stores in Tanishq and 8 stores in Mia by Tanishq," it said.
Watches & Wearables division's 13 per cent YoY growth comprised of 8 per cent growth in analog watches segment and 84 per cent YoY growth in WearablesEyeCare division saw sales growth of 10 per cent YoY. The Trade & Distribution (Trade) channel grew faster than Titan Eye+ improving its contribution in the overall pie," Titan Company said.
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