Titan plunges 7.2% on profitability worries, analysts cut price targets
"Aggressive store expansion by existing players and entry of new player (e.g., Novel Jewels by Aditya Birla Group will invest ₹5,000 cr) may keep competitive intensity elevated," said Citi's analysts in a client note.
Mumbai: Shares of plunged 7.2% Monday after fourth-quarter results showed is under pressure. Most trimmed their on the stock, but the forecasts still imply upside of 8-22% over Monday's closing price of ₹3,281.Analysts said rising could dent for Titan's products. "There is a notable and sudden rise in gold prices (+15%) over the last two months which is impacting footfalls/growth and also gross margins/mix," said in a client note. "We see gold price volatility as a key variable to monitor; as seen historically, stability/gradual gold price change bodes well for demand."
said it expects the stock to remain under pressure in the near term amid intensified and softer demand.
Agencies"Aggressive by existing players and entry of new player (e.g., Novel Jewels by Aditya Birla Group will invest ₹5,000 cr) may keep competitive intensity elevated," said Citi's analysts in a client note.
said despite the share's outperformance in the past year and gold price-led volatility and margin concerns, which could weigh on the near-term share prices, it expects mid-high teens over the medium term.
Source: Stocks-Markets-Economic Times
