PhillipCapital cut its FY20-21 EPS estimates by 13-16 percent to account for subdued demand.
Titan Company shares fell 0.7 percent intraday on July 17 after global brokerage PhillipCapital downgraded the stock, citing weak jewellery demand in near term.
The stock fell 16 percent in last 15 sessions. It was quoting at Rs 1,109.75, down Rs 5.15, or 0.46 percent on the BSE at 1235 hours IST.
The investment firm downgraded its rating on Titan Company to neutral from buy and also slashed price target to Rs 1,165 from Rs 1,200 earlier, citing weak jewellery demand in near term.
"We expect near-term jewellery demand to remain weak due to spike in gold prices, poor macroeconomic environment and hike in custom duty," the brokerage said.
September quarter will be the worst quarter for the entire jewellery industry, it added.
Hence PhillipCapital cut its FY20-21 EPS estimates by 13-16 percent to account for subdued demand.
Titan Company will announce its unaudited financial results for the quarter ended June 2019 on August 6.Last week, the jewellery maker said its revenue in June quarter grew a muted 13 percent as a sharp increase in gold prices dented consumer demand significantly. Jewellery business contributed 82 percent to total revenue in FY19. Gold price increased by 10 percent during June quarter.The Great Diwali Discount!
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