Share ofTitan Companytumbled nearly 10 percent in the early trade on November 6 after the company reported a muted set of numbers for the quarter ended September 2019.
The company’s Q2FY 20 profit grew 1.8 percent at Rs 320 .2 crore on the back of subdued growth in the jewelery business which contributes 80 percent to revenue.
Profit in September quarter 2018 stood at Rs
Revenue during the quarter grew by 0.6 percent year-on-year to Rs 4, 435 crore.
Jewelery business revenue fell 1.5 percent to Rs 3, 528 crore compared to the year-ago period and its earnings before interest and ta x (EBIT) declined 2 percent and margin contracted 5bps YoY.
However, revenue from its watches segment grew 6.4 percent to Rs 718 .7 crore, but its EBIT dropped 6.9 percent and margin plunged 220 bps YoY during the July-September quarter.
Billionaire investor Rakesh Jhunjhunwala reduced his stake in the company in the September quarter.
As per regulatory data, Jhunjhunwala and his wife together held 5, 77, 51, 220 shares at the end of September in Titan Company, which is 7. 82 percent lower than 6, 26, 51, 220 shares held at the end of June.
Jefferies | Rating: Hold | Target: Rs 1, 100 per share
According to the research house, the risk-reward is unattractive at current valuations and it has cut its estimates by 8 percent for FY 20 / (*****************************************************.
Credit Suisse | Rating: Neutral | Target: Rs 1, 110 per share
The large PBT decline, subdued festive sales lead to a cut in FY 20 guidance, said Credit Suisse.
The research house cut its FY 20 – 22 earnings estimate by 8 – 10 percent as the company faces risks of further cuts to the lowered H2 expectations.
CLSA | Rating: Downgrade to sell from underperform | Target: Cut to Rs 1, 025 from Rs 1, (per share
The Q2 was a disappointment on almost all fronts and reduced EPS forecasts by 12 – 16 percent, said CLSA.
Prabhudas Lilladher | Rating: Hold | Target: Rs 1189
Broking house cut FY 20 and FY 21 EPS estimates by 11 .7 percent and 13 .7 percent, respectively on the back of poor festival season sale, H2 sales growth guidance cut in Tanishq from (percent to) – 13 percent and increased price-based competition from local jewelers.
At 0916 hrs, Titan Company was quoting at Rs 1, 194 . 00, down Rs 89. 85, or 7. 00 percent on the BSE.Special Thursday Expiry on10th7thNov
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