The company said that though its retail sales grew by 7 percent in the second quarter, the revenues declined 2 percent YoY in Q2 "substantially due to adverse impact of the hedges matured during the quarter”.
The share price of Titan plunged 6 percent intraday on Wednesday after the company released quarterly updates on the BSE saying that though its retail sales grew by 7 percent in the second quarter, the revenues declined 2 percent YoY in Q2 "substantially due to adverse impact of the hedges matured during the quarter”.
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Adding to the decline in the stock price is HSBC Research slashing its target price on the company to Rs 1,410 from Rs 1,450 per share while maintaining a 'buy' call.
The brokerage, however, in its report, said that the retail jewellery sales grew 15 percent in August-September after de-growth in July.
The company said that its watches segment underwent weak consumer sentiment due to moderation in the growth rate of division to 7 percent for the quarter and 13 percent for half-year.
HSBC Research, however, said that the company can weather the demand weakness with its offers. The company stands as a long-term structural winner, and the current valuations also remain appealing, the brokerage said.
Meanwhile, the company also informed in the BSE filing that Bhaskar Bhat has retired as the managing director of the firm and C.K. Venkataraman, who has been the CEO of Jewellery business since 2005, will take over the MD's position.