Titan Company share was trading lower in the morning on October 28 even after the Tata group company a day earlier reported a healthy consolidated profit after tax of Rs 641 crore for the September quarter.
The consolidated revenue was 76 percent higher at Rs 7,243 crore for the quarter from Rs 4,127 crore in September 2020 quarter. Revenues in Q1FY22 stood at Rs 3,004 crore.
The jewellery division recovered strongly after the second wave because of pent-up demand and an increase in planned sales of jewellery.
It recorded a consolidated income of Rs 6,571 crore with a 65 percent growth in the September quarter compared to Rs 3,983 crore in the year-ago period (excluding bullion sale in both the periods).
The watches and wearables business recorded an income of Rs 689 crore, up 72 percent from Rs 401 crore from the September quarter of the previous year.
The eyewear business grew by 70 percent and registered revenue of Rs 160 crore compared to Rs 94 crore in the same period last year.
Indian dress wear, fragrances & accessories segment declined 12 percent on a consolidated basis to Rs 99 crore from Rs 113 crore in the year-ago quarter, the company said.
The stock was trading at Rs 2,407.55, down Rs 52.80, or 2.15 percent at 10.22 am. It touched an intraday high of Rs 2,481.00 and an intraday low of Rs 2,360.
The scrip was trading with volumes of 84,405 shares, compared to its five-day average of 61,331 shares, an increase of 37.62 percent.
Global research and broking firm Credit Suisse has retained a “neutral” call on the stock and has raised the target to Rs 2,500 a share.
It said the company's margins across the three divisions were higher than estimates. The growth was due to pent-up demand shifting from Q1 to Q2, a CNBC-TV18 report said.
Morgan Stanley has maintained an “overweight” call on the stock, with the target at Rs 2,501 a share. According to the research firm, the Q2 earnings beat estimates and consensus by 15 percent, with the management remaining confident about the festival season.Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions.