Titan Company has released its data for the first quarter of FY 2023, which has been very strong. There has been a growth of 3 times in the revenue of the company on a yearly basis.
Titan Company Stock Price: There is a strong rise in the shares of Titan Company today. Today the company’s stock gained more than 8 percent to reach Rs 2172, while on Wednesday it closed at Rs 2014. Actually Titan Company has released its data for the first quarter of FY 2023, which has been very strong. There has been a growth of 3 times in the revenue of the company on a yearly basis. Strong growth has been seen in every segment from jewelery to watches. After seeing the numbers for the first quarter, brokerage house Motilal Oswal has expected a 48 percent rally in the stock. Let us tell you that Titan is among the top stocks in terms of value in the portfolio of market veteran Rakesh Jhunjhunwala. His belief in this has remained intact for a long time.
Earnings growth visibility strong
Brokerage house Motilal Oswal says that 1QFY23 was strong for Titan Company. During this, there has been a 3 fold jump in revenue on a yearly basis. After recovering from Kovid 19, now the business of the company is becoming normal. Brokerage has named Titan as their favorite pick in the largecap segment in the consumption space and has set a target of Rs 2,900 with an upside of 48 per cent. The brokerage house says that the earnings growth visibility is strong. The company is doing well in every segment. In the jewelery segment, the company is seeing more profit than other organized players. In this, the company is focusing on increasing its market share.
200% growth in sales
Titan’s first quarter sales have increased by 205 percent or about 3 times on a yearly basis. However, the main reason for this has been the low base. In this quarter of the last financial year, the company’s sales were affected due to COVID-19. The Tata Group company said in a BSE filing that sales grew 205 per cent in Q1FY23 and 20.5 per cent CAGR during the three years since Q1FY20.
Jewelery sales up 207 percent
Titan continued its expansion strategy in the first quarter, taking the total number of stores operated by the luxury brand to 2160 as of June 30. In this, 120 stores were opened in the period April-June 2022. Jewelery sales during the first quarter grew by 207 per cent as compared to the year-ago period. Sales have been very strong in the month of May on the occasion of Akshaya Tritiya. Due to which this segment also grew 3 times in the first quarter.
Record sales of watches and wearables
The company informed that in the first quarter of FY 2023, there was a growth of 158 percent in the sales of watches and wearables, which is the highest ever quarterly revenue. Major channels of Multi-Brand Retail (MBR), Titan World and Large Format Stores (LFS) are on their growth trajectory from FY 2022 onwards. All the brands and channels have done a good job in the weaving season during April and May.
Eye Care Division
Titan’s eye care division achieved 176 per cent year-on-year growth. Fragrances grew by 262 percent year-on-year, while fashion accessories saw a 293 percent year-on-year growth.