Recovery of Titan's jewellery business in Q1 fails to enthuse Street

Muted demand for high-value studded products a major concern

In its first-quarter update for FY21, Titan Company after market hours on Tuesday said its jewellery business in June reached 70 per cent of the year-ago level, and 83 per cent of its stores across all businesses were now open. But, the Street wasn't impressed and the stock fell 2.6 per cent on Wednesday; the Sensex was down 0.8 per cent. According to the update, Titan's jewellery revenue in May was slightly below 20 per cent of the year-ago level.

Even as the recovery in the jewellery business, which accounts for over 80-85 per cent of Titan’s revenue and operating profit,