Titan Drops The Most In Three Months As Jewellery Business Sees Sharp Fall In Q2 Sales
A customer tries on gold bangles inside a jewellery store (Photographer: Brent Lewin/Bloomberg)

Titan Drops The Most In Three Months As Jewellery Business Sees Sharp Fall In Q2 Sales

Shares of Titan Co. Ltd. fell the most in three months after it reported a sharp fall in the jewellery division sales in second quarter following a sudden surge in gold prices.

Jewellery sales fell sharply in July but rose 15 percent year-on-year between August and September, the Tata Group company, which owns the Tanishq brand, informed the exchanges.

Sudden rise in gold prices dented consumer demand from mid-June, said Titan adding “The weakness continued during July too and resulted in considerable de-growth in sales during the month.

Titan shares have risen around 35 percent so far this year, making it the third best performer on the Nifty 50 index.

Here’s what brokerages had to say about Titan’s Q2 business update:


  • Maintained ‘Neutral’ with a price target of Rs 1,078.
  • September quarter has been ‘moderate’ for jewellery.
  • Expect margin expansion due to higher retail gold prices.
  • Expect hedging losses due to high gold price movement.


  • Maintained ‘Overweight’ with a price target of Rs 1,370.
  • Subdued September quarter sales update.
  • Sequential improvement noted due to promotions.
  • All eyes on festive offtake.


  • Downgraded to ‘Neutral’ from ‘Buy’; hiked price target to Rs 1,370 from Rs 1,175.
  • September quarter updates inline with expectations; do not see any impact on margins.
  • Stock valuations and challenging environment cap upside.
  • Medium-term upside appear priced-in and hence downgrade.


  • Maintained ‘Buy’; cut price target to Rs 1,410 from Rs 1,450.
  • September quarter’s operating statement suggests retail jewellery sales grew 15 percent in August-September.
  • Titan can weather demand weakness with its offers and deliver stronger growth in the second half.
  • Remains long-term structural winner and valuation remains appealing.

Also read: Investors Take Cover as Gold ETFs Post Longest Run in a Decade

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.