Titan’s share price has declined for 5 consecutive days. Should You Buy or Sell?

Titan is a large-cap stock and holds a leadership position in the Gems & Jewelery segment.

Titan’s share price declined on Tuesday Will end at 15.90 or 0.64% 2,467.30 per share on BSE. Its market cap is over 2.19 lakh crores. downside in Titan The stock is in a slower recovery than Monday’s decline of more than 2%. Titan has been one of the top underperformers on the exchanges this week.

Titan shares fell nearly 3 per cent on Dalal Street in two trading sessions this week. But the stock is in the red since Jan 4. Titan shares have declined nearly 5 per cent in five trading sessions. Last time Titan stock was up The 2,600 mark was on January 3.

Wife of late market mogul Rakesh Jhunjhunwala rekha jhunjhunwala Titan is one of the largest public investors in the stock. Jhunjhunwalas added Titan to its portfolio in December 2015. However, Rakesh passed away on August 14, 2022. But his assets including shares and property were passed on to his family. Since then his wife Rekha Jhunjhunwala has been diversifying him and his stock portfolio.

Titan is the largest company in Jhunjhunwalas’ portfolio in terms of valuation. According to Trendline data, Rekha Jhunjhunwala’s holding in Titan is close to Rs. 12,144 crores till 10 January.

Titan shares fell heavily after the December 2022 quarter update on January 6. In Q3FY23, the company reported a standalone sales growth of 12% YoY. On segment-wise performance, the jewelery business registered a growth of 11%, watches and wearables registered a growth of 14%, while eyecare and emerging business registered year-on-year growth of 10% and 75%, respectively.

The company added 111 new stores in Q3FY23—taking the total to 2,362 stores in FY23 so far.

In its filing, on Q3 performance, Titan said, healthy consumer demand due to a vibrant festive season resulted in a 12% increase in combined sales across the company’s standalone businesses. Positive consumer sentiment helped all categories register healthy double-digit growth despite a higher base in the same period last year.

Should you invest in Titan shares?

Ahead of the FY23 Q3 figures, Centrum said, “We believe that continued sales momentum across all business segments will have a positive impact on organized jewellery.”

Centrum’s note said, “In line with our thesis as argued in our report, we expect strong revenue growth to continue, as demand is expected to strengthen going forward. We believe that continued sales momentum across business divisions will have a positive impact.” on organized jewelery retail benefitting players like Titan.”

Additionally, Centrum stated that “we expect strong demand momentum for watches and eyewear given general consumer dynamics. Further changes to Caratlane’s watches and eyewear divisions and the continuation of their profitability potential are not yet priced in.” “

Centrum remains positive on growth prospects for Titan and retains Buy with DCF-based TP 3,115 (64.8x avg, FY24 / 25E EPS applicable).

Furthermore, ICICI Direct believes that Tanishq has effectively fine-tuned the template for success in Chennai/Tamil Nadu, which the brokerage believes is an exemplary template in other southern states.

It said, “Tanishq has been able to meaningfully sharpen its competitive edge by being aggressive on pricing and inventory offering compared to top regional competition. This has enabled it to improve business (number of customers/revenue) by c. 1.5 times.” The South has always been a competitive market for Tanishq due to (i) highly competitive dominant organized jewelers and (ii) relatively weak regional offerings by Tanishq.”

However, ICICI Direct’s note also states that “(i) its well thought out strategy to match the gold rate with the competition, (ii) provide customers with 100% exchange value on gold of 22kt and above”. Offering, (iii) benchmarking fees with top regional competitors, (iv) regionalization of store inventory and (v) onboarding Nayanthara (Moviestar) as brand ambassador, a successful recipe We believe this model can be replicated in other regions of South India.

That being said, ICICI Direct’s note said, “Our optimism remains intact. This is a company where, in our view, the potential to convert the opportunity into earnings is high. Key risks: Sustained weakness or deterioration of the macro environment.” There could be some slowdown. , which hasn’t been factored in. Add.”

ICICI Direct’s target price has been set at 2,800 per share on Titan with ‘Add’ recommendation.

Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.