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Shares of Titan Company hit a new high of Rs 3,205.45, surging 3 per cent on the BSE in Friday's intra-day trade, in an otherwise subdued market, after the company recorded a strong revenue growth of 20 per cent year-on-year (YoY) during the April-June quarter (Q1FY24) with all key consumer businesses exhibiting double digit growth in the quarter. In comparison, the S&P BSE Sensex was down 0.23 per cent at 65,631 at 09:17 AM.
Thus far in the calendar year 2023, Titan has outperformed the market by rising 25 per cent, as compared to 7.5 per cent rise in the benchmark index.
The company's jewellery division witnessed a satisfactory performance and grew 21 per cent YoY in the April-June quarter. "Buyer growth was higher than average ticket size growth for this period. Despite significant volatility in gold prices throughout the quarter, Akshaya Tritiya sales in April and wedding purchases in June were robust," Titan said in its Q1FY24 quarterly update.
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Meanwhile, Watches division reported 13 per cent YoY sales growth with wearables increasing 84 per cent YoY. CaratLane (72 per cent owned Subsidiary) continues to scale to new highs with robust growth of 32 per cent YoY.
Titan has been a secular growth story with consistent market share gains from the unorganized players. Despite challenging demand scenario, Tanishq, through its strong brand patronage, continued to deliver healthy results. Over a long-term, the company aspires to grow jewellery revenues by 2.5x by FY27 (implied CAGR: 20 per cent from FY22 base)," ICICI Securities said in a note.
The jewellery performance was encouraging at a time when there was a significant rise in gold prices. Analysts at Prabhudas Lilladher believe that robust jewellery demand, improved mix and hallmarking benefits, expansion of 100 stores in eyewear in FY24 and acceleration in store openings in watches, and scale up in emerging businesses like Taneira and wearables will be major growth drivers for Titan.
