Titan Company extends rally, surges 8% on robust sales in June quarter

The company said jewellery division had a good start to FY23 with robust sales on the auspicious occasion of Akshaya Tritiya in May month after 2 years of Covid induced lockdowns in this period

tanishq, jewellery, watch, titan company
SI Reporter Mumbai
3 min read Last Updated : Jul 07 2022 | 9:54 AM IST
Shares of Titan Company surged 8 per cent to Rs 2,170.95 on the BSE in Thursday's intra-day trade after the company said its total sales in the first quarter of fiscal 2022-23 (Q1FY23) grew 205 per cent year-on-year (YoY) led by strong wedding demand and a low base.

Further, the revenue came in at 3-year CAGR of 20.5 per cent over Q1FY20. The business in April-June 2022 was near normal after a gap of two years, the company said.

The stock has rallied 11 per cent in the past two trading days, and 19 per cent from its 10-month low of Rs 1,827 touched on July 1 in the intra-day trade. However, in the past three months, Titan has underperformed the market by falling 13 per cent, as compared to 8.5 per cent decline in the S&P BSE Sensex. The stock had hit a 52-week high of Rs 2,768 on March 21, 2022.

At 09:38 am, Titan was trading 6 per cent higher at Rs 2,127.30, as against 0.67 per cent rise in the benchmark index.

In Q1FY23, jewellery revenue nearly tripled, clocking a growth of 207 per cent. The Division had a good start to FY23 with robust sales on the auspicious occasion of Akshaya Tritiya in May month after 2 years of Covid induced lockdowns in this period. Both walk-ins and buyers grew in-line with revenues whereas ticket size marginally improved compared to Q1FY22, Titan Company said in its exchange filing. READ HERE

Meanwhile, watches & wearables division achieved its highest-ever quarterly revenue in Q1FY23, growing 158 per cent YoY with healthy growth witnessed across all brands and products. The key channels of Multi-Brand Retail (MBR), Titan World and Large Format Stores (LFS) continued on their growth trajectory from FY22. The wedding season drove demand for all brands in Apr’22 and May’22, it said.

"In the Jewelry industry, which is organizing at a rapid space, Titan is clearly at the vanguard among organized players in leading this growth. Its runway for growth is long, with a market share of around 6 per cent. Unlike other high-growth categories, the competitive intensity from organized and unorganized peers in Jewelry is considerably weaker," Motilal Oswal Financial Services said in a stock update.

"Titan remains our top pick in the largecap Consumption space in India, with strong earnings growth visibility and compounding by ~20 per cent for an elongated period of time," the brokerage firm added.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
Subscribe to Business Standard digital and get complimentary access to The New York Times

Quarterly Starter

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

Save 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Topics :Buzzing stocksTitan CompanyMarkets

Next Story