Titan Company shares rise post Q4 business update; can they hit Rs 3,250?

Shares of Titan Company Ltd rose over 2% today after the luxury goods retailer reported a 25 per cent year-on-year rise in its top line for the March quarter. The company attributed the growth to higher contributions from watches & wearables and its emerging businesses. The stock touched an intraday high of Rs 2602.1, up 2.09% on BSE. The share has climbed 2.39 per cent in a year but lost 0.89% since the beginning of this year.

A total of 0.27 lakh shares of the firm changed hands, amounting to a turnover of Rs 6.89 crore. Market cap of the firm fell to Rs 2.29 lakh crore on the BSE.

In terms of technicals, the relative strength index (RSI) of the stock stands at 63.7, signaling it's neither trading in the overbought nor in the oversold territory. The stock has a beta of 1, indicating average volatility in a year. Titan Company stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock hit a 52 week high of Rs 2790 on October 31, 2022 and a 52 week low of Rs 1827.15 on July 1, 2022.

The watches & wearables segment logged a 41 percent growth YoY, which was led by strong growth in analog watches segment and almost tripling of revenues from wearables.

The company’s jewellery business expanded 23 percent year -on-year, with 31 new stores being added during the quarter. This came on a low base as Q4 FY22 was disrupted due to partial lockdowns caused by Omicron wave.

Macquarie has assigned a target price of Rs 3250 for Titan Company. Healthy growth across watches & jewellery was the key takeaway from pre-4Q update. Softening of demand in March due to a sharp rise in gold prices should reverse, Titan said adding that demand at lower price points seems to be recovering.

CITI too has a buy call on Titan with a target of Rs 3091.The brokerage said Titan posted impressive growth despite relatively weak March. Store expansion also remained strong. Growth for other segments was impressive as well, with all standalone categories recording double-digit growth, it added.

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