Jewellry maker Titan Company Ltd. on Tuesday reported a 12.9 percent growth in net profit for the third quarter of fiscal 2020 at Rs 470 crore as against Rs 416.2 crore in the same quarter last year. Titan's net profit was lower than CNBC-TV18 poll estimates of Rs 500 crore.

Revenue from operations in Q3FY20 rose 9.4 percent to Rs 6,206.2 crore versus Rs 5,672.2 crore year-on-year.

According to global brokerage UBS, Titan's overall market share for jewellery segment can grow to 20.5 percent by FY23 from 13.5 percent in FY19.

UBS maintained buy rating on the stock with a target price (TP) of Rs 1,525 per share.

The company had a muted January with a 7-8 percent rise in gold prices. The management of the company reiterated its guidance of 11-13 percent revenue growth in Q4.

Macquarie cut Titan’s earnings by 3-4 percent over FY19-22 on lower revenue assumptions. The brokerage maintained neutral call and raised its TP to Rs 1,222 from Rs 1,159 per share earlier.

Macquarie said that the company's adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) was ahead of street estimates on higher margin.

IDFC Securities said that it is a strong believer in Titan’s long-term story.

Given the premium valuations, the brokerage maintained 'neutral' stance on the stock with a TP of Rs 1,357 per share.

Credit Suisse too continued to be positive on Titan’s long-term story in the jewellery segment. It maintained neutral rating due to stretched valuations and raised TP to Rs 1,250 from Rs 1,110 per share. The brokerage cut its earnings marginally by 1-2 percent for FY20-22.

Titan's operating income beat estimates. Ebitda during the quarter surged 25.9 percent YoY to Rs 735.6 crore against the CNBC-TV18 poll estimates of Rs 720 crore, while Ebitda margin rose to 11.9 percent from 10.3 percent YoY.

"The month of December 2019 witnessed a drop in footfall across all our retail formats compared to the previous two months and hence the sales were muted. The retail growth for our jewelry business was healthy in Q3 on account of a good wedding season,” said CK Venkataraman, managing director, Titan.

Jewellery business contributed to 87 percent to Titan's total income. The segment reported 10.6 percent growth YoY.

The company's watch segment revenue registered a fall of 2.4 percent YoY, while the eyewear business grew by 2.9 percent in Q3FY20, YoY. Other businesses of the company registered a growth of 32.6 percent during the quarter at Rs 49 crore.

At 10:15 am, Titan shares traded 0.28 percent higher at Rs 1,279.10 on the BSE.