Titan Company Ltd. share are under review on Wednesday after the Tata group company disclosed that its revenue increased 40% year over year in the December quarter, mostly due to robust growth in jewelry. The average selling price (ASP) rise, the gold exchange program, and the successful wedding season drove the jewelry industry’s 41% year-over-year growth. For the quarter, the rise in studded jewelry was in the mid-twenties.
As of September 30, 2024, Rekha Jhunjhunwala owned a 5.32 percent share in Titan. The share is valued at more than Rs 19,000 crore.
According to JM Financial, the Tata Group company’s total standalone revenue is anticipated to increase by 38% year over year, with the jewelry business (ex-bullion) likely to expand by 40%. “After accounting for base custom duty losses, we anticipate a jewelry EBIT margin of 10.8% (ex-bullion sales), down 40 basis points year over year. Overall, we see 60%/64% YoY increase in standalone Ebidta/PAT,” it stated.
Old Share based on Broking, the jewelry industry saw equal expansion in the low thirties. The markets for watches, eyecare, and new startups provided 13%, 16%, and 14%, respectively. Similar to the category’s suffering, the smart wearables watch sector saw a 26% YoY fall.
“Jewelry (TMZ) in the GCC, Singapore, and North America (NA) led the 79% growth in foreign business. With a revised goal of Rs 4,500 (earlier Rs 4,400) and offering the company at 60 times P/E on 1HFY28 forecasts, we slightly raise our estimates and continue to suggest buying,” Antique said.
Centrum based on Broking, Titan’s Q3 reports were mostly favorable. “Studded jewelry continued to see buyer increase, although buyer growth remained subdued due to significant gold price inflation. The larger rise in gold compared to stud jewelry will continue to put pressure on jewelry EBIT margins. Analog watches helped the firm maintain its double-digit growth pace in the watches area for the seventh straight quarter.
Despite continuous store reduction, the brokerage said that the eyeglasses industry had a sequential increase in growth momentum.
“Given the strong growth trajectory, we expect earnings upgrades for the share and maintain a BUY rating,” it stated.
