Titan Company share price jumped 5.65 per cent to Rs 1,267.80 apiece after the company informed that its jewellery division did well in July-September quarter, with a recovery rate of around 98 per cent in the second quarter as compared to the revenue of the same quarter in last year. The company in its quarterly business update for Q2 of FY 2020-21, said that the recovery rate in metro cities has been improving gradually while in non-metros it seems to have recovered substantially. “The stock has witnessed a strong up move over the past few days and we believe the positive news flow of strong business update further strengthens the bullish bias,” Vikas Jain, Senior Research Analyst at Reliance Securities, told Financial Express Online. Jain remains positive on the Rakesh Jhunjhunwala’s favourite stock with a higher target price of Rs 1,330, an upside of 11 per cent from the previous close.
Titan said that the sales in September month have been decent, despite the inauspicious period of Shradh. The festival season will commence about 15 days later in the current year. The gold coins sales have also been high reflecting the customer’s preference to invest in gold as an asset class. The wedding jewellery segment did particularly well in the quarter. Titan informed that the company continued to sell excess gold in its inventory and the quarter had a sale of Rs 390 crore of raw gold. “This has helped improve the cash flow of the division significantly,” it added.
Watches and wearable segment had a recovery rate of around 55 per cent in the second quarter of the current fiscal as compared to the revenue of the same quarter in last year, with a recovery of 70 per cent in the September month. The eyewear unit had recovery of 58 per cent in the second quarter, in comparison to the corresponding period of the previous year.
Around 11.40 AM, Titan Company shares were trading 4.83 per cent higher at Rs 1,257.90 apiece on BSE. In comparison, S&P BSE Sensex was 0.58 per cent up at 39,809. Titan is sponsoring Cricket LIVE in IPL for the third consecutive year as a co-sponsor for this year with the brand participations from Tanishq and Titan watches.
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