Titan shares climb over 5% post Q3 results. Should you buy, sell or hold?

Shares of Titan rallied over 5% to Rs 2,424.5 in Friday's intraday trade on BSE. The company reported a net profit of Rs 951 crore for the December quarter, down 4% YoY. It was Rs 987 crore in the corresponding quarter of last year.

Its sales during the quarter rose 11% to Rs 10,444 crore, compared with Rs 9,381 crore in the same quarter last year.

In the jewellery business, total income saw 11% growth at Rs 9,518 crore. The Indian business, meanwhile, rose 9% in the same period, backed by healthy consumer demand during the festive season. EBIT for the segment came in at Rs 1,236 crore, with a 13% EBIT margin.

A total of 22 stores (excluding Caratlane) were added during the quarter, taking the total jewellery store count to 510 spread across 247 cities.

Continuing its growth trajectory, the watches and wearables business recorded a total income of Rs 811 crore, up by 15% compared with last year's quarter. The business reported an EBIT of Rs 89 crore, with an EBIT margin of 11%.

On a year-to-date basis, Titan's stock has fallen about 7% on BSE.

Should you buy, sell or hold Titan stock? Here's what analysts say:

Prabhudas Lilladher
"We upgrade the stock to Buy and increase our FY23/FY24/FY25 EPS estimates by 1.5%/2.0%/2.0% and target price to Rs 2,905 (Rs 2,875 earlier), given strong underlying demand trends across divisions in Jan23 and ~17% correction from the peak," it said.

HDFC Securities
HDFC Securities has upgraded the stock to a Reduce (Earlier Sell) with an unchanged DCF-based TP of Rs 2,150/share (implying 46x Dec-24 P/E) as the downside is now limited, post the recent over 15% stock correction, it said.

Motilal Oswal
Motilal Oswal maintained its buy rating on Titan with a target price of Rs 3,070.

"Titan has a strong runway for growth, given its market share of sub-10% in Jewelry and continued struggles faced by its unorganized and organized peers. Its medium-to-long-term earnings growth visibility is nonpareil," it said.

ICICI Securities
ICICI Securities maintained its Add rating on Titan with a target price of Rs 2,600.

"Our optimism stays intact. This is one company where the capabilities to translate the opportunity to earnings are high. We increase our FY23-24E earnings estimates by ~1-3%, modelling revenue / EBITDA / PAT CAGR of 23 / 29 / 31 (%) over FY22-24E," it said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)