Shares of Titan spiked over 9% on the BSE in intraday deals after the jewellery major posted an impressive performance in the December quarter, especially in the backdrop of demonetisation.
The company reported a 13% increase in its standalone net profit at Rs 255.75 in Q3 against Rs 226.15 crore reported in the same period last financial year.
Reacting to its quarterly earnings, the stock gained as much as 9.6% to Rs 431 on the BSE. The scrip settled the session 8% higher at Rs 425.
On the volume front, over 10 lakh shares exchanged hands on the BSE as compared to its two-week average of 0.73 lakh shares.
Brokerage Reliance Securities continues to remain positive on Titan owing to its leadership in organised jewellery market, success of new products and recovery in watch business.
“Envisaging Titan to deliver 12% and 18.4% CAGR in revenue and profit respectively, we maintain our ‘buy’ recommendation on the stock with an upwardly revised target price of Rs 457,” said the brokerage in a result update report on the Titan.
Meanwhile, brokerage Edelweiss Securities also recommended ‘buy’ on the stock with a target price of Rs 480. The stock is currently trading at 26.2 times its FY19E earnings per share (EPS), it said.
“Titan will be key beneficiary of urban recovery, while sharp focus on innovation and retail expansion will boost growth. Rising share of wedding jewellery, focus on improving sales per sq ft and cost optimisation will also aid margin, Edelweiss added.
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