The Titan company share price has fallen for the fourth consecutive day after it reported the earning details of Q4 in March 2022. Further, the company has lost 6% in the last 5 trading sessions.
Keep reading this piece to learn more about the performance of Titan Company and the reaction of investors over it!
Closer Look into the Performance of Titan Company
Revenue collected from Titan’s jewelry division went down 4% year on year. However, there was a 12% rise in the watches & wearables division revenue and 5% in the revenue of the eye care segment. Apart from this, a 23% rise was recorded in revenue from other businesses for the quarter that ended in March 2022.
So, even though the earnings of Titan Company got disrupted in Q4 2022, it was able to finish off its quarter with a satisfactory result. This disruption was firstly due to a partial lockdown in January 2022 because of Omicron. Secondly, in March, there was a drastic increase in gold prices and uncertainty due to geopolitical situations that hurt consumer sentiments.
What Did the Company Say About Its Future Share Price?
The company says the underlying demand across its different business sectors on the basis of the YoY growth posting was strong (taking Q4 FY 2022 as a base). Not only this, but it is also progressing by putting on a campaign and carrying network expansions for an upbeat Q1 FY 2023. Thus, investors can expect a normal first quarter after a two-year gap due to COVID-19 lockdowns in the same quarter from the previous years.
What Are the Brokerages Saying?
Here below is the view of top brokerage firms about company stock and value:
According to Prabhudas Lilladher, Titan is in the perfect position to capitalise on LT growth owing to its hallmarking benefit and its new growth drivers, Titan Eye+, Caratlane, etc. Also, it shows a positive outlook because of its omnichannel strategy and entry into high growth segments, including truly wireless earphones and headphones.
As per estimation, Titan should record a PAT CAGR of 21% and a DCF target price of Rs. 2,754.
Morgan Stanley broking house showed a stock overweight targeting Rs. 2,700 for each share. It even said the company would continue to progress in its first quarter, seeing its network expansion and campaign initiatives.
CLSA, on the other hand, has put an underperformance rating on Titan stock, targeting Rs. 2,540 for each share. There was a better mix and a weak topline delivery, supporting the earnings. The firm kept in mind the company’s underlying demand that will continue to be strong in future. On the other hand, its overall revenue fell 3% in Q4.
The EBITDA will be 13.2% resulting in a growth of 15% in earnings YoY as per CLSA.
To sum up, after the release of Titan’s Q4 earnings, the share price of its jewellery segment fell. However, the stocks from its other sectors have still recorded a rise in price. So, it has become successful in establishing a satisfactory overall result.
After reading the above details and running a full analysis, individuals interested in investing in the Titan company share can open their Demat account via the Angel One platform for easy signup.
For further updates on the stock market, IPO and Q4 results, keep an eye on Angel One blogs!
Frequently Asked Questions
How much return Titan Company stock has given over six and twelve months?
The stock of Titan Company has given a return of 58% and 16% over the last twelve months and six months, respectively.
What is the current quoting of Titan Company shares?
The current quoting of Titan Company shares on 7 April 2022, 11:57 am, stands at Rs. 2480/share down by 2.41% as per BSE.
What is the net profit of Titan Company for FY 2022?
Titan recorded Rs. 987 crores as its standalone net profit after tax for Q3 FY 2022.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.