The share price of Tata’s jewelry division Titan Co tumbled 2 % and is now trading at 2500 in Monday’s intraday trade after the company’s jewelry division reported a 11 percent year-on-year (yoy) growth in the December quarter.
The division experienced growth during the quarter thanks to strong holiday new buyer growths, higher-value purchases in the studded category, and original new collections for the season.
For the time being in the past month, the stock has been heavily underperforming as the shares fell by 5 percent as against 2.6 percent in the Sensex. While the benchmark index saw a 4% increase over the past three months, the stock fell by 9% during that time.
The company recorded a 12 percent year-on-year growth in its standalone business in Q3 of FY23 due to healthy demand and the festive season
Titan company conveyed that “The positive consumer sentiment helped all categories clock healthy double-digit growths despite a high base in the same period of last year,”
The leading watch and jewelry maker of tata group stated that they are expanding their business in a healthy manner as it added 111 stores in October-December, taking the total no of stores to 2362 at the end of the quarter
The company further added that the Gold jewelry (plain) segment growth in comparison to the same period last year was moderately outpaced by sales from the studded category. In line with the Division’s overall sales growth, wedding sales increased. In December 2022, Tanishq opened its first global boutique location in New Jersey, USA. Six stores across Dubai, Abu Dhabi, and the United States make up the international presence as of the opening of this store.
Motilal Oswal analysts have proclaimed that the earnings to growth visibility of the Titan group have remained strong as it has compounded the earnings by 20 %
Analysts at ICICI securities have said that for the year FY 23 With a YoY growth of more than 40%, the jewelry division (which includes CaratLane) put on a strong performance.
The brokerage firm further adds
“As per our estimates, we expect Titan to exit more than 35 percent YoY revenue growth (much ahead of the management guidance of 20 percent). Titan has been a secular growth story with consistent market share gains from the unorganized players,”
