Titan stock gains on optimism around eyewear industry after Lenskart-ADIA deal

Titan eyecare business segment recorded a total income of Rs 174 crore, up by 12 percent compared to Q3FY22. Business reported an EBIT of Rs 32 crore clocking an EBIT margin of 18.4 percent.

Titan Company gained as much as 3% in intra-day trade amidst rising optimism around the eyewear industry after Lenksart’s latest $500 million fundraise.

The eyewear unicorn raised $500 million for a 10% stake from Abu Dhabi’s sovereign wealth fund, Abu Dhabi Investment Authority (ADIA), valuing the company at $4.5 billion. The investment will be a mixture of primary and secondary transactions, making ADIA one of the largest shareholders in the eyewear retailer.

Upon completion, Lenskart will have cumulatively raised nearly $750 million in the last 12 months.

However, it remains to be seen whether the Street and analysts would start ascribing value to Titan’s eyewear business any time soon or not.

Also read: Titan's eye care brand seeks partners to achieve greater 'technological edge': Report

As for the stock, Titan has seen a decline of 9.3% in the last year, along with an erosion of 4.4% year-to-date (from January 1).

The eyecare business segment recorded a total income of Rs 174 crore, up by 12 percent compared to Q3FY22. The business reported an EBIT of Rs 32 crore clocking an EBIT margin of 18.4 percent.

Titan Eye Plus opened its first international store in Dubai in the month of December 2022. The network expansion continued with 36 new stores added during the quarter taking the total store count to 863 spread across 354 cities.