Titan shares drop up to 4% following the Q1 statement due to a brokerage cut and a target price reduction.

Titan shares drop up to 4% following the Q1 statement due to a brokerage cut and a target price reduction.

Titan’s stock value NSE and Titan Q1 financial update: Titan shares dropped more than 4% in early trade on Monday to close at Rs 3,135.3, the lowest of the day, following the company’s post-market Friday presentation of its quarterly business update for Q1FY25. The jewelry business activities at the retailer of watches had an 8% year-over-year growth. While buyer growth was in the low single digits, the majority of domestic growth was driven by increases in average selling prices. There were 699 stores in the company’s jewelry segment as of June 2024.

As of the most recent count, the company’s shares were trading at Rs 3,151 per share, a 3.62 percent reduction.
In the domestic market, the company’s wearables and watches sector had year-over-year growth of 14%. According to the company’s filing, consumer preferences for premium products were evident, as seen by the greater growth rates observed in Titan, Helios channel, Nebula, Edge, and Xylys.

In the meantime, the domestic eyecare division of the corporation had year-over-year increase of 3%. The company stated that volume growth is being aided by its entry into the inexpensive fashion market.
Furthermore, Taneira’s income increased by 4% annually in the Emerging Businesses category.
What do international brokerages advise on Titan following its Q1FY25 business update?

The stock was reduced by global stockbroker JP Morgan from an earlier “overweight” recommendation to a “neutral” rating. The target was also lowered from Rs 3,850 to Rs 3,450, indicating an approximate 6% gain. With a 9% revenue rise in the first quarter, the company’s jewelry division fell short of its pre-lowered forecasts.
The brokerage also brought attention to two other issues:

a) slowing the rise of studded jewelry; and

b) stepping up margin-negative promotional activity.

JP Morgan lowered the company’s projected EPS for FY25–27 by 5–6% in light of this.

Goldman Sachs kept its rating of “buy” on Titan as well, but it lowered the objective from Rs 3,800 to Rs 3,700, indicating a possible gain of more than 13%. The company’s earnings for FY25–26 have been cut by 3–4% by the brokerage. According to the brokerage, rivals performed far better in Q1. Additionally, it stated that although jewelry margins are probably going to be low, FY25 projection is still reachable, but perhaps at the lower end of the range.