Shares of Titan Company Limited rallied over 3 per cent on Friday morning after the jewellary maker reported a strong operationg performance update for April-June quarter for fiscal 2024. The Tata Group company recorded a 20 per cent year-on-year growth in revenue with all key consumer businesses witnessing double-digit growth in the reported quarter.
The stock hit a fresh 52-week high of Rs 3,211.10 per share on BSE. At 10:25, Titan shares were trading 84.55 points or 2.72 per cent higher at Rs 3,190.50.
Titan’s jewellery division rose 21 per cent year-on-year in the first quarter. “Buyer growth was higher than average ticket size growth for this period. Despite significant volatility in gold prices throughout the quarter, Akshaya Tritiya sales in April and wedding purchases in June were robust,” the company said.
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In the watches and wearable unit, it witnessed a 13 per cent year-on-year growth comprising 8 per cent growth in analog watches segment and 84 per cent year-on-year growth in wearables. Sequentially, watches segment growth slowed to 2 per cent.
Its eyecare segment saw sales growth of 10 per cent year-on-year in the June quarter anf the Trade & Distribution channel rose faster than Titan Eye+ improving its contribution in the overall growth.
Among the emerging businesses, fragrances & fashion accessories recorded 11 per cent year-on-year, on the back of 9 per cent growth in fragrances and 13 per cent growth in fashion accessories. Taneira’s first quarter sales increased 81 per cent year-on-year.
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“CaratLane grew 32 per cent YoY driven with healthy contributions from multiple avenues that included sales during Akshaya Tritiya,” the company said.
Brokerage firm Goldman Sachs has a “buy” call with a target price of Rs 3,175 per share. The jewellery sales growth has surpassed expectations, resulting in a four-year compounded annual growth rate (CAGR) of 23 per cent.
Morgan Stanley has an overweight rating with a target price of Rs 3,207 per share.
