Suryaa Business Desk: Titan Company Limited has reported its second-quarter financial results, drawing attention from market participants. While Motilal Oswal Financial Services has slightly reduced the target price for the stock due to short-term costs and fluctuations in international gold prices, the brokerage has maintained its bullish outlook and buy rating on the company's long-term business growth.
In the second quarter, Titan reported a consolidated total income of ₹20,533 crore, a 25 percent increase on a year-on-year basis. The jewelry division recorded a 24 percent growth in sales to ₹17,495 crore, while the watches segment grew by 27 percent to ₹1,881 crore. The eyewear division also registered a 28 percent growth. Despite the festive season shifting into the third quarter, business expansion remained steady due to increased demand for studded jewelry.
Motilal Oswal noted that even with high gold prices, customers are shifting from the unorganized sector to organized brands, benefiting Tanishq. Sales in the studded jewelry segment, which offers higher profit margins compared to plain gold jewelry, are supporting the company's operating margins.
Analysts expect jewelry sales to reach record levels in the second half of the year due to the wedding season and festivals including Dussehra, Diwali, and Dhanteras. Additionally, CaratLane continues to show steady performance in the lightweight jewelry segment, and the expansion of international stores is diversifying the company's revenue streams. Market experts suggest that despite short-term market volatility, Titan remains a reliable opportunity for long-term investors in the large-cap segment.
