Shares of Titan, a Tata group firm, zoomed nearly 3.35% in the early trade on Friday to mark a new all-time high of ₹3,210 apiece. This came after the street reacted positively to the company's Q1-FY24 business update.
In an exchange filing on Thursday, the company said it recorded revenue growth of 20% YoY for Q1 FY24, with all key consumer businesses exhibiting double-digit growth in the quarter.
The company added 68 stores during the quarter, taking its total retail presence (including CaratLane) to 2,778 stores at the end of 1QFY24.
Its jewellery division grew 21% YoY during Q1. The company stated that buyer growth was higher than the average ticket size growth for this period. Despite significant volatility in gold prices throughout the quarter, Akshaya Tritiya's sales in April and wedding purchases in June were robust, it added.
The company's Watches & Wearables division clocked a sales growth of 13%, comprised of 8% growth in the analog watches segment and 84% YoY growth in Wearables. Brand Titan and international brands saw strong buying momentum, clocking handsome double-digit growths. Consumer preferences for premium brands resulted in a good uptick in the average selling price for watches, the company noted.
Further, the EyeCare division saw sales growth of 10% YoY. The Trade & Distribution (Trade) channel grew faster than Titan Eye+, improving its contribution to the overall pie. The Division added five new Titan Eye+ and two new Fastrack stores in the domestic market during the quarter, it said.
While in Emerging businesses, Fragrances and Fashion accessories grew 11% YoY, driven by 9% growth in Fragrances and 13% growth in Fashion Accessories. Taneira's sales grew by 81% YoY.
CaratLane sales grew by 32% YoY, driven by a healthy contribution from multiple avenues, that include sales from Akshaya Tritiya, 'Ada' - a new hero collection, 'Minion X' - a product launch for kids, and new micro-occasions for jewellery gifting like 'First Salary Gifting'.
Following the company's Q1FY24 business update, brokerage firm Motilal Oswal maintained its 'buy' rating on the stock with a target price of ₹3,325.
"Earnings growth visibility remains strong for TTAN. It has compounded earnings by 20% over an extended period. The company has ample opportunities for growth, given its sub-10% market share in Jewellery and the ongoing challenges faced by its unorganized and organized peers. Its medium-to-long-term earnings growth potential is unparalleled," said the brokerage.
During the March quarter (Q4FY23), the company posted a 40% YoY jump in its consolidated net profit to ₹736 crore, whereas its revenue from operations soared to ₹10,360 crore, a 33% increase compared to ₹7,796 crore recorded in the year-ago quarter.
Looking at the FY23 performance, the company finished the fiscal year with a 49% rise in its consolidated net profit of ₹3,274 crore. The revenue from operations recorded a growth of 41% to ₹40,575 crore from ₹28,799 crore registered in FY22.
32 analysts polled by MintGenie on average have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.