Titan shares in focus after jewellery business drives Q4 growth, flags West Asia disruption

Shares of Titan Company Ltd. are in focus on Wednesday, April 8, after the company reported its provisional update for the fourth quarter.

Titan's domestic jewellery segment grew around 46% from the previous year, beating estimates of 42%. The same was driven by strong like-for-like growth, which across all jewellery retail formats combined was close to 48% from the previous year.

Brokerage firm Citi has a "neutral" rating on the stock and a target price of ₹4,750 per share, indicating a potential upside of 12% from its previous closing price.

Buyer growth improved to high-single digit and ticket sizes increased, Citi said, adding that studded segment grew in the early 30s, gold grew by mid-30s and coin sales nearly tripled from last year.

Meanwhile, Tanishq added eight India stores and converted four Damas stores overseas. Its combined retail network was at 3,603 stores. CaratLane witnessed a 24% growth, while watches, eyecare and emerging businesses grew 7%, 16% and 17%, respectively. However, Titan witnessed a 53% decline in its smart watch category.

The company's consolidated consumer revenue was up 46% from the previous year.

The company said premiumisation trends contributed to healthy ticket size increases in the quarter.

Titan also noted that significant disruptions occurred in the GCC region in March due to the conflict in West Asia.

Of the 37 analysts who have coverage on the Titan stock, 28 have a 'buy' rating, six have a 'hold' rating and three have a 'sell' rating.

Titan shares ended the previous session 0.2% lower at ₹4,238 apiece. The stock has gained 4.7% this year, so far.

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