Titan shares plunged over 9.5 percent in early trade on Wednesday after the Tata group company reported weaker-than-expected earnings for the quarter ended September. Investor sentiment was further dented with Titan Co reducing its jewellery sales growth guidance to 11-13 percent for the next two quarters from 20 percent earlier.
Brokerages have either downgraded their rating on the stock or reduced price target. Global brokerage Credit Suisse has maintained neutral call at a target price of Rs 1,110 per share. CLSA has a sell target at Rs 1,025 per share.
On Tuesday, Titan Company Ltd reported a 3.5 percent year-on-year (YoY) jump in net profit at Rs 311.65 crore for the second quarter ended September 2019.
In the corresponding quarter last year, the company posted a net profit of Rs 301.11 crore. CNBC-TV18 Polls had predicted a profit of Rs 378 crore for the quarter under review.
Its total income in the September 2019 quarter rose to Rs 4,693.34 crore, compared with Rs 4,595.13 crore in the year-ago period, Titan Company said in a regulatory filing.
The income from operations in the second quarter, July to September 2019, was Rs 4,435 crore, against last year's income of Rs 4,407 crores during the same period.
The Standalone PBT for Q2 is Rs 429 crore, against Rs 446 crore last year. The growth in the profit before tax for the quarter was impacted due to the flat growth in revenues compounded by an increase in certain overheads, it said.
Titan's retail chain stands at 1,668 stores, as on September 30, 2019, with a retail area crossing 2.1 million square feet nationally for all its brands.
CK Venkataraman, managing director, said, "The company has done well across all its businesses in the second quarter given the subdued market and consumer sentiments. For the second half of FY 20, we are gearing up on all fronts to stimulate demand with innovative campaigns for new exclusive collections that are lined up for launch across all our brands."
At 9.29 am, Titan Company ltd shares quoted at Rs 1187, down by 7.54 percent on BSE. The stock opened at Rs 1160, down over 9.5 percent from its Tuesday's close of Rs 1283.85.
In the last one year, the stock has delivered a whopping 73.7 percent return despite the economic slowdown and liquidity crunch.
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