Shares of Titan Co. pared all opening gains even as most analysts reiterated ‘buy’ ratings on the ‘Tanishq’ owner citing market share gains, long-term growth opportunities in its key jewellery business, focus on eyewear, among others.
India’s largest branded jewellery maker saw its profit jump 91% over the year earlier in the quarter-ended December, beating estimates. That was driven by a strong festive and wedding season demand across its consumer businesses.
Sales in its mainstay jewellery segment, accounting for 90% of total revenue, rose 32.5% year-on-year. Excluding the sale of bullion, jewellery sales rose 37%.
Analysts, however, cautioned over the company’s high valuation. Of the 31 analysts tracking, 20 maintain a ‘buy’, six suggest a ‘hold’ and five recommend a ‘sell’, according to Bloomberg data. The 12-month consensus price target implies an upside of 7.2%.
Shares of Titan rose over 1.8% in early trade but soon reversed to trade 1.17% down as of 9:36 a.m. The stock’s trading volume was four times the 30-day average volume at this time of the day.