Titan shares jump. Should you buy, sell, hold after Q3 results?

“Titan Company reported a miss in Q3 FY23 performance as the expected margin accretion on a high revenue base did not come through given activations in a volatile demand environment. That said, after a strong festive and a not-so-great November-December, demand in January is robust again (around 20% 3Y CAGR growth) and attribute this to weddings, which have seen a significant shift to the Q4 quarter,” said Edelweiss which has a Buy rating on Titan shares with a target price of ₹3,290.

Thereafter, demand may normalise given the consumer sentiment, but we still expect Titan to clock among the highest growth in the consumer space; the stock stays a top pick, said Edelweiss.

“Reported India jewellery growth at <10% was broadly in-line, secondary was better at 15% – growth was supported by new buyer growth, with slight rise in bill value. The segmental margins were however a slight miss, partially due to higher discounts. Watch segment grew in double-digits but margins were lower. Management commentary for Jan was positive in jewellery after a slight moderation in Nov/Dec. We remain at Hold (PT of ₹2,550),” as per Jefferies.

“Given strong execution, we remain confident of the high-teens earnings trajectory continuing for Titan in the medium term. The stock has corrected ~20% in the last 3 months which, in our view, is unwarranted. We maintain BUY on Titan, with Mar-24 TP of Rs2,940, based on 52x FY25 EPS. Stronger traction in the Taneira/Handbags/Intl. businesses remains a potential upside to estimates,” said another brokerage Emkay.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.