The lockdown on account of COVID-19 has disrupted Titan's major business segment revenues. Although the company's March quarter earnings exceeded analysts expectations, the slip in jewellery sales is a concern, and therefore, CLSA has reiterated 'sell' rating on the stock by raising the target price to Rs 855 from Rs 810.

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The report points out that the company's share gains and responses to the challenges are encouraging but the rise in the gold prices, subdued wedding demand, and franchisee's financial health remain a concern.

"We still expect normalcy in FY22. The rebounded in line with other consumer discretionary stocks but since Titan should be a late-cycle beneficiary and with valuations at 54x CY22CL PE, we reiterate a SELL rating," added the brokerage.

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Meanwhile, according to the management, nearly 75 percent of its jewelry store network has resumed operations and is expected to reach 90 percent by June-end.

To this, Emkay Global's report said that Titan's Q1FY21 will witness a sharp decline i.e. zero sales in April, 10-15 percent in May, and 30-40 percent expected in June.

However, management's aggressive cost-saving initiatives and the lower fixed cost structure may keep margins intact for FY21, added the report.

In its March quarter results, when compared against a year-ago period, the company reported a slip of 5.2 percent in revenues to Rs 4,429 crore. The net profit grew 21.1 percent to Rs 356.8 crore while EBITDA (operating profit) surged 32.5 percent to Rs 603.6 crore.

Among all its business segments, watches saw a revenue increase of 4.8 percent YoY to Rs 557 crore while others reported a decline in business.

At 1:00 pm, the stock traded 0.59 percent lower to Rs 991.25 per share on the NSE.