Titan Company shares declined as much as two percent on Thursday, a day after the Tata group firm reported its quarterly earnings.

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After the market hours on Wednesday, Titan reported a net profit of Rs 61 crore for the quarter ended June 30 over revenue of Rs 3,249 crore. The company had reported a net loss of Rs 270 crore for the corresponding period a year ago.

At 11:00 am, the Titan stock traded down 1.24 percent at Rs 1,777.40 apiece on the bourse, underperforming the benchmark S&P BSE Sensex index, which was down 0.15 percent as Dalal Street took a breather following a series of highs in the past two sessions.

Analysts in a CNBC-TV18 poll had estimated the company's revenue at Rs 2,835 crore for the quarter.

The company's EBITDA came in at Rs 144 crore and its EBITDA margin stood at 4.4 percent. For the quarter ended June 2020, the company had reported an EBITDA loss of Rs 246 crore.

The CNBC-TV18 poll had predicted EBITDA at Rs 135 crore and the EBITDA margin at 4.8 percent.

The company saw a swift recovery from the second half of June, Titan chief financial officer Ashok Sonthalia told CNBC-TV18.

While some categories have begun growing, the company is gunning for growth above the FY20 levels, he said.

He also said the company will open 35 Tanishq stores this year. It has already opened 11 stores, Sonthalia added.

Here's what brokerages said on the company's Q1 show:

Morgan Stanley

The brokerage has an 'equal-weight' rating on the stock with a target price of Rs 1,358 apiece. It said the company's performance in the jewellery segment was in line with its estimates. Losses in the non-jewellery segments were higher than expected, Morgan Stanley said, adding that margin improvement in jewellery remains key.

CLSA

The brokerage has a 'sell' call on the stock with a target of Rs 1,380. The management is hoping for a faster recovery in the lifestyle segments, while its jewellery business is recovering well in Q2, according to CLSA. The valuations are already pricing in the upside related to demand recovery and share gains, it added.

Goldman Sachs

The brokerage has a 'sell' call on the stock with a target price of Rs 896 apiece. The revenue growth across segments in Q1 was broadly in line with estimates, but EBITDA missed forecasts, according to Goldman Sachs. The jewellery EBIT margin was ahead of estimates, offset by losses in other segments.

Motilal Oswal

The brokerage has maintained a 'buy' call on Titan shares with a target price of Rs 2,065. The company posted commendable results despite the lockdown and further recovery appears to be underway, according to Motilal Oswal. Titan's watches and eyewear businesses seem to be reporting a much faster recovery compared with what was witnessed after the lifting of Covid-related restrictions last year.

With the recovery in June continuing into July, pent-up demand and a healthy wedding season demand outlook appear attractive, according to the brokerage.

ICICI Securities

The brokerage has maintained an 'add' call on the stock with a target price of Rs 1,800. ICICI Securities believes mandatory hallmarking will create a level playing field in the Indian jewellery market, driving further formalisation.

It will lead to likely traceability of raw material, leading to potentially higher imports through formal route, material business disruption for informal players in converting their inventory to hallmarked standards, an opportunity for design-oriented brands to realise higher brand premium and higher industry-wide efforts to drive premiumisation, ICICI Securities added.

It also said consumers may choose to convert old jewellery to hallmark-compliant ornaments in FY21-23E.