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Titan Industries tumbles to 52-week low on concerns about gold imports

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Capital Market
Last Updated : Jun 12 2013 | 10:00 AM IST

Meanwhile, the S&P BSE Sensex was down 82.65 points or 0.43% at 19,060.35.

On BSE, 5.44 lakh shares were traded in the counter as against average daily volume of 9.45 lakh shares in the past one quarter.

The stock hit a low of Rs 206.50 so far during the day, which is also its 52-week low. The stock hit a high of Rs 224 so far during the day. The stock had hit a record high of Rs 313.60 on 30 November 2012.

The stock had underperformed the market over the past one month till 11 June 2013, declining 18% compared with the Sensex's 4.87% slide. The scrip also underperformed the market in past one quarter, falling 5.78% as against Sensex's 2.56% slide.

The large-cap company has equity capital of Rs 88.78 crore. Face value per share is Re 1.

Shares of Titan Industries dropped 18.38% in two trading days from a recent high of Rs 265.20 on 10 June 2013 after the company issued a statement on Reserve Bank of India (RBI)'s clarification on gold imports during trading hours on Tuesday, 11 June 2013.

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Titan Industries said that the RBI has clarified that all imports of gold for domestic consumption, either through banks, nominated agencies or directly can be made only with 100% cash margin. The RBI has also clarified that credit of any kind from suppliers or bullion banks for import of gold for domestic use is prohibited, Titan said. This will affect import of gold through all non consignment routes like gold on lease/loan, Titan Industries said. Titan imports gold for its retail gold jewellery business.

Titan said it had sought some clarifications on gold imports after the RBI issued a notification on 4 June 2013 on changes to the current terms governing import of gold in India.

Titan Industries' net profit surged 28.2% to Rs 184.97 crore on 14.8% growth in net sales to Rs 2593.13 crore in Q4 March 2013 over Q4 March 2012.

Titan Industries retails branded gold jewellery under the brand name Tanishq. It sells watches under a premium brand Titan and economy brand Sonata.

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First Published: Jun 12 2013 | 9:24 AM IST

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