Higher gold prices, low growth in Q1 take the shine off Titan stock

Analysts believe that market share gains, revenue visibility, margin expansion and return ratios could support valuations

High valuations and low growth in the June quarter (Q1) led to a steep 12 per cent fall in the Titan Company stock. Investors could not stomach the subdued performance by the company’s core jewellery segment, which accounts for over 80 per cent of overall revenues.

The stock, trading at 50-51 times one-year forward earnings, did not leave any room for disappointment on the operations front.

The company reported a year-on-year jewellery segment growth of 13 per cent for the June quarter, the slowest in four quarters. This would now put to test the company’s ability to achieve FY20 revenue