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Titan Stock Dives on Mixed Q2 Update
7 Oct
Summary
- Titan's shares fell over 4% on mixed Q2 results.
- Jewelry business saw slower growth; watches and wearables grew.
- Despite the dip, brokerages maintain positive outlooks on Titan.
Titan Company's stock declined more than 4% on Wednesday after the company released a mixed business update for the second quarter of fiscal year 2026-27. The company's largest segment, jewelry, experienced growth of approximately 21% year-on-year, falling short of an estimated 28% and below the 20% growth in domestic jewelry sales. This slower performance was partly attributed to a shift in the festive calendar impacting consumer demand towards the end of the quarter.
In contrast, other divisions of Titan showcased robust growth. The watches and wearables segment surged by around 30%, significantly exceeding expectations. Similarly, the eyecare business grew by approximately 28%, and emerging businesses, including fragrances and fashion accessories, reported a 21% increase. CaratLane, a subsidiary, also performed well, with revenue growth of 32%.
Despite the stock's recent dip, numerous financial analysts have reiterated their positive ratings for Titan. Brokerages like HSBC, Citi, Morgan Stanley, and JP Morgan have maintained 'Buy' or 'Overweight' recommendations, albeit with some adjustments to their target prices. They cited resilient underlying demand and strong performance in studded jewelry as key positives, suggesting potential entry opportunities after the recent correction.
