While staying neutral on the stock, Credit Suisse also slashed price target Rs 1,050 from Rs 1,250 after cutting FY20/21 earnings estimates by 7/9 percent
According to brokerages, profit growth for the March quarter could be in the range of 19-37 percent and revenue may rise 15-23 percent backed by jewellery as well as watch & eyewear segments.
Net Sales are expected to increase by 17.3 percent Y-o-Y (down 17.9 percent Q-o-Q) to Rs. 4,818 crore, according to ICICI Direct.
The research firm expects Asian Paints, Titan Company, United Breweries, Pidilite Industries, Marico and Nestle India to outperform peers
But non-auto consumer discretionary companies like Titan and Zee Entertainment are expected to report relatively stronger growth, Deutsche said.
Net Sales are expected to increase by 23.1 percent Y-o-Y (down 15 percent Q-o-Q) to Rs. 4,820 crore, according to Kotak.
Jefferies has maintained its hold rating on Titan but raised target price to Rs 1,100 from Rs 920 after increase in earnings estimates by 6 percent for FY19-21.
Net Sales are expected to increase by 28.6 percent Y-o-Y (up 20.7 percent Q-o-Q) to Rs. 5,318 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 29.3 percent Y-o-Y (up 24 percent Q-o-Q) to Rs. 5,462.9 crore, according to Kotak.
Strong jewellery offtake in H2 FY19, consequent normalisation of promotional expenses and operational efficiencies in the watches segment are expected to be the major re-rating triggers.
Titan Company's operating income is also expected to grow in double digits, margin expansion is likely to be muted year-on-year though, according to brokerages.
Despite its heady valuation, the stock provides investors a series of tailwinds to cash in on and has all that it takes to re-rate further.
Overall retail sector earnings are expected to grow in double digits for the quarter ended June 2018, but far lower growth than the year-ago period.
Recent disruptions in the gems and jewellery sector have catapulted the company to an enviable position among organised players.
Net Sales are expected to increase by 20.5 percent Y-o-Y (down 0.1 percent Q-o-Q) to Rs. 4,132.8 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 15.2 percent Y-o-Y (down 7.6 percent Q-o-Q) to Rs. 3,949.7 crore, according to ICICI Direct.
The transition of India’s jewellery industry from unorganised units to tax-compliant entities will work considerably in favour of Titan, one of the largest organised branded players in the country.
In an interview with CNBC-TV18, Subbu Subramaniam, CFO of Titan spoke about the results and his outlook for the company.
Operating profit is seen rising 31 percent year-on-year to Rs 480.8 crore and margin may expand 120 basis points to 10.8 percent in Q3.
Robust fundamentals, coupled with favourable economic moats, may result in the valuation gap between PC Jeweller and Titan narrowing over a period of time.