Shares of Titan Company Ltd were trading flat on Wednesday morning, ahead of the announcement of the Tata Group company's March quarter numbers. Based on Titan's quarterly business update, it is expected to be a healthy quarter, aided by a low base.

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The Rekha Jhunjhunwala portfolio stock was down 0.42 percent at Rs 2,650.05 apiece on the BSE. Titan Company shares have gained 4.54 percent in a month, while on a year-to-date basis it rose nearly 16 percent. The stock has hit a 52-week high of Rs 2,790 on October 31, 2022 and a 52-week low of Rs 1827.15 on July 1, 2022.

Titan Company has undergone significant price or time correction over the past 18 months and in current context the stock has resolved out of past four month’s consolidation (2626-2270) along with falling channel breakout in the Nifty signalling resumption of uptrend.

Structurally, the share price retraced July-October 2022 rally (1825-2791) by just 50 percent over the past six months. Slower pace of retracement of rally indicates inherent strength. Further the share price held its long term rising 52-week EMA twice during January and March 2023 despite elevated gold prices highlighting resilience.

Brokerage ICICI Direct expects the share price to challenge lifetime highs and head towards Rs 2,900 as it is 123.6 percent retracement of November 2022- March 2023 decline (Rs 2791-2321) over the next few months.

Titan Q4 numbers

The Tata group company will likely post a 25 percent-plus growth in its net profit on the back of a double digit rise in sales. A CNBC-TV18 poll expects growth in excess of 20 percent for the firm's topline, while operating performance is expected to be better than last year.

Titan Company may outperform the retail space for the fourth quarter (Q4FY23) aided by the shift in the wedding season, analysts at Nuvama Institutional Equities said.

Brokerage Sharekhan expects the company to post a 28.5 percent on-year growth in its net profit at Rs 729 crore as against Rs 567 crore in the same quarter a year ago. Sharekhan sees sales rising 28.8 percent YoY to Rs 10,042 crore from Rs 7,796 crore in the year-ago quarter.

Titan, in its quarterly business update, said that its standalone revenue rose by 25 percent from last year aided by higher growth contributions from watches and wearables and emerging businesses.

The Tata group firm's jewellery business, which contributes to majority of the topline surged by 23 percent from last year on a lower base.

The watches segment witnessed a growth of 41 percent, aided by strong growth in the analog watches segment and almost tripling of revenues from wearables.

Meanwhile, emerges business rose 84 percent during the quarter, while Taneira sales tripled during the quarter.

All three divisions of Titan are expected to report a double-digit margin in the March quarter, according to a poll by CNBC-TV18.

First Published:May 3, 2023 11:58 AM IST