Despite reporting stellar Q2 numbers and a strong demand commentary, shares of Titan Company fell as much as 4 percent on Thursday after gaining for two straight days.

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At 12:18 pm, shares of Titan Co were trading 2.2 percent lower at Rs 2,405.20.

The stock has gained close to 40 percent in the past three months, and today's fall in the scrip is likely due to profit-taking after confirmation of strong earnings.

The jewellery maker's profit for Q2 of FY22 jumped to Rs 641 crore as compared to Rs 173 crore in the corresponding period last year, while its revenue from operations came in at Rs 7,493 crore from Rs 4,553 crore in the year-ago period.

Revenues from all segments saw healthy growth on a YoY basis.

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Titan also saw a sharp improvement in profitability despite higher raw material costs. The company's consolidated operating margin came in at 13 percent in Q2.

"Titan's strong growth this quarter was underpinned by demand recovery being witnessed in all segments of the Company. Our stores were fully operational, returning to pre-pandemic normalcy in most parts of the country with a continued focus on health and safety of our customers, business partners and our employees,” said CK Venkataraman, Managing Director of Titan Co.

Venkataraman added, “Titan's store expansions have gained traction during the quarter, which was partially disrupted in the pandemic period. Our strong digital presence combined with trusted offline experience gives a positive outlook for the overall performance of the Company for the rest of the fiscal year".

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Morgan Stanley noted that the watchmaker's management remains confident about the upcoming festive season. It will continue to invest in growth in all business segments given the market share opportunity, added the brokerage.

Macquarie has raised earnings per share estimate for the company by 13 percent for FY22 to factor in higher-than-expected Q2 earnings and EBITDA. Plus, FY23 and FY24 see a 3 percent upgrade to factor in structural tailwinds in watch and eyewear margins.

Macquarie has raised its target price on the stock to Rs 3,000 from Rs 2,780.

Haitong International Research has also raised its EPS estimates by 3.2-6.7 percent for FY22-24 driven by a strong revival in discretionary spending and robust store addition plans. The brokerage has also hiked its target price to Rs 2,720 from Rs 2,060.

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