Shares of Titan opened lower on January 9 as the growth clocked by the company in October-December quarter failed to meet analyst expectations. The Street had forecast a growth of 17 percent on-year on the back of strong wedding season, while Titan reported 12 percent growth.
At 10:30am, the stock was quoting at Rs 2491.25, lower by 1.80 percent. It has gained 15 percent in the last six months.
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The maximum growth was recorded by Titan in its 'emerging businesses' category, where the sales shot up by 75 percent on-year. This includes fragrance and fashion accessories, and Indian dress wear sold under the Taneira brand.
The 'watches and wearables' segment registered a 14 percent growth. The jewellery business grew 11 percent on-year, with 22 new stores being added during the quarter.
A total of 111 new retail outlets were added in the quarter across businesses, taking the total count to 2,362.
Also Read: Titan Q3 business update: Combined sales jump 12% YoY, 111 new stores added
Foreign brokerage firm Morgan Stanley that has an Overweight rating on the stock, said: “The initial Q3 trends were slightly weaker than expected. The growth came on a high base of 36 percent in Q3FY22. Growth was slower in the second half of the year.”
Macquarie stated that the pace of store additions was also weaker than expected. In Q1FY23, the company had added 120 stores followed by 91 in Q2FY23.
However, the firm has an 'outperform' rating on the stock with target raised to Rs 3250 apiece largely on the back of resilience in Titan's consumer demand.
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