Titan stock shines after Q2 update, addition of 105 stores in the quarter

The stock has always been highly valued with a current PE that's usually averaged around 45-50x

The “pre-quarterly update” by Titan has been favourably received by the market. The company says standalone sales grew 18 per cent year-on-year (YoY) in Q2, 2022-23 and it also added 105 new stores in the quarter. Management guidance is that consumer sentiment appears positive going into the festive season.

All this seems like good news and given the reliable quality of management it is possible to make reasonably accurate estimates of revenue, margins, etc. However, many investors have already started buying the stock in anticipation of results, which means any disappointment with actual results could create a downside risk.

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