Titan shares in focus as most brokerages slash target price post weaker-than-expected Q2 results

Shares of Tata group's jewelry-to-watch company- Titan are successful absorption successful Wednesday's league (November 6) aft the company's weaker-than-expected Q2 show. And successful airy of it, astir global brokerages person slashed the stock's people price. 

Net nett astatine the institution for the September 4th declined 23 per cent year-on-year (YoY) to Rs704 crore successful examination to Rs 915 crore during the aforesaid play of the erstwhile year. Zee Business probe estimated the company's PAT astatine Rs 1,080 crore. The company's profitability fell contempt an summation successful gross by 16 per cent on-year to Rs 14,534 crore, from Rs 12,529 crore successful Q2FY24. Analysts estimated gross to travel successful comparatively little successful examination astatine Rs 14,430 crore.

On the operational front, the company's EBITDA during the reporting 4th besides fell 12 per cent on-year to Rs 1,236 crore arsenic against Rs 1,411 crore successful the aforesaid 4th of the erstwhile year. The estimates were sharply higher astatine Rs 1,640 crore. Meanwhile, arsenic against the forecast of EBITDA borderline astatine 11.4 per cent, the company's borderline tumbled by 2.8 per cent oregon 280 ground points to 8.5 per cent during Q2FY25.

Here's however planetary brokerage presumption Titan banal aft Q2 performance

Goldman Sachs has continued with its bargain standing and has slashed the people connected the banal by a borderline to Rs 3,650 from the earlier pegged people of Rs 3,750. The suggested people implies an upside of astir 13 per cent from the erstwhile close.

Even though the maturation outlook remains robust, determination has been a chopped successful borderline guidance. As per the brokerage, the institution logged beardown maturation successful jewellery successful Q2 and festive play successful Q3 has besides been good. The company's absorption noted that lab-grown diamonds are not having immoderate worldly interaction connected their business. Jewellery margins  astatine the institution person disappointed, with absorption lowering its borderline guidance for FY25 by astir 100bps.