Extending its weakness, shares of Titan Company Ltd dropped another 2 per cent to hit a 52-week low on Tuesday as the Tata Group stock officially entered the bear grip with counter dropping nearly 21 per cent from its all time high hit on September 30, 2024. The stock has been consistently falling despite the gold price soaring to all-time highs.
The recent fall in the Tata Group's bluechip counter has wiped out nearly Rs 4,000 crore from Jhunjhunwala's portfolio. Rakesh Rekha Jhunjhunwala, wife of late Rakesh Jhunjhunwala, cumulatively owned 4,57,13,470 equity shares, or 5.14 per cent stake in the company as of September 30, 2024. The value of her stake has tumbled to Rs 13,796.32 crore from Rs 17,673.51 crore as of Q2FY25.
Shares of Titan Company dropped 2.09 per cent to Rs 3,018 on Tuesday, with its total market capitalization falling slightly below Rs 2.7 lakh crore mark. The stock had settled at Rs 3048.95 for the trading session. The stock is down around 15 per cent in the last six months, while it's down 7 per cent on a year-to-date basis.
Overseas brokerage firm Macquarie remains positive on Titan Company. However, it has trimmed its target price by 4 per cent. Titan preferred pick in consumer space and the rise in gold lease cost for smaller players, it said. The foreign brokerage sees Titan's competitiveness rising and lab grown diamonds concern not material.
Macquarie cut FY25-27 EPS by 3-4 per cent due to higher lease costs (Trump's Tariff) and near term impact on jewellery demand due to higher gold prices. It has an 'outperform' rating on the stock with a target price of Rs 4,000. Another global brokerage firm Goldman Sachs gave its a 'buy' rating with a target price of Rs 3,900 on the stock.
Titan reported a marginal dip of 0.6 per cent in the consolidated net profit for the third quarter ended on December 30, 2024 to Rs 1,047 crore. However, the consumer discretionary major's total income rose 25 per cent YoY to Rs 17,723 crore. Ebitda for the quarter rose 2.8 per cent YoY to Rs 1,641 crore but Ebitda margin declined by 210 basis points to 10.1 per cent in the quarter.
Post the 3QFY25 performance and adjusting medium-term jewelry margin, Antique Stock Broking cut its earnings estimates by 9-10 per cent for FY26-27E while maintaining its FY25 estimates. It has revised its target price to Rs 4,184 from Rs 4,598 earlier.
Titan offers a long runway for growth with a superior execution track record, said Motilal Oswal with a 'buy' tag and a target price of Rs 4,000. Nuvama Institutional Equities is building on this growth and margins. It has a 'buy' rating on the stock with a target price of Rs 4,115.
However, HDFC Securities has a 'reduce' rating on Titan with a target price of Rs 3,160 as it believes that heightened competition can add pressure on the margins.