Titan Company Ltd. shares increased more than 2% today after the luxury goods retailer announced a 25% year-on-year increase in revenue for the March quarter. The firm attributed the increase to increased contributions from watches and wearables as well as its growing businesses. On the BSE, the stock reached an intraday high of Rs 2602.1, up 2.09%. The stock has gained 2.39 percent in a year but dropped 0.89% since the start of the year.
A total of 0.27 lakh shares of the company were traded, resulting in a Rs 6.89 crore turnover. On the BSE, the company’s market capitalization plummeted to Rs 2.29 lakh billion.
Technical analysis shows that the stock is neither overbought nor oversold because its relative strength index (RSI) is 63.7. The stock has a beta of 1, suggesting low annual volatility. The stock of Titan Corporation is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
On October 31, 2022, the stock reached a 52-week high of Rs. 2790 and a 52-week low of Rs. 1827.15 on July 1, 2022.
The watches and wearables category grew by 41% from one year to the next. This was due to strong growth in the analogue watches segment and sales of wearables that almost doubled from the year before.
The company’s jewellery division grew by 23% year on year, with 31 new shops opening during the quarter. This followed on the heels of Q4 FY22 being interrupted by partial lockdowns induced by the Omicron wave.
Titan Corporation has a target price of Rs 3250 set by Macquarie. The important message from the pre-quarterly report was healthy growth in watches and jewellery. Titan added that the softening of demand in March owing to a strong surge in gold prices should revert and that demand at lower price points seems to be returning.
Titan is also a buy call for CITI, with a target price of Rs 3091.
Titan reported outstanding growth despite a somewhat sluggish March, according to the brokerage. Store growth has also been significant. Other areas grew as well, with all solo categories growing by double digits, according to the report.