Titan’s Jewellery Business Posts 15% Growth In Festive Season
Shares of Titan Co. jumped to the highest in nine months after the nation’s largest branded jewellery maker saw its mainstay business grow in mid-teens during the festive month.
“The company saw good traction across all its businesses in the festive season. The jewellery business witnessed mid-teens growth (around 15%) for the 30-day festive season starting from Dussehra till Diwali over the corresponding period last year, with a decent recovery in studded jewellery sales,” the owner of ‘Tanishq’ brand said in an exchange filing.
Titan, in an interview to BloombergQuint late last month, had said it was confident that its business will improve over the coming quarters as people continue to buy gold for festive and security purposes. The company reported a 3% year-on-year fall in total revenue in the quarter ended September. Sales in its jewellery segment, which accounts for 80% of total revenue, however, rose 8.7%. The company, Managing Director CK Venkataraman told analysts in a post-earnings call, expects jewellery sales in the third quarter to be 90-100% of previous year’s performance.
Besides, Titan said the watches and wearables business did quite well in the festive season with recovery close to last year levels. “Eyewear business, too, has witnessed a good traction,” it said in the filing.
Shares of the jewellery maker ended 1% higher after gaining as much as 5.1%—the most in over two months—to Rs 1,345.6 apiece. Of the 31 analysts tracking Titan, 14 have a ‘buy’ rating, 10 suggest a ‘hold’ and the rest recommend a ‘sell’. The stock is trading 9% higher than its Bloomberg consensus 12-month price target of Rs 1,208.4 apiece.