MAHARASHTRA, India – Despite the mostly weak stock market on Monday, Titan share price surged to as much as 3% following the jewelry company’s third-quarter revenue report showing an 11% profit growth.
Its impressive revenue growth and the increase in gold prices boosted the share price of Titan on Monday. During that intraday trading session on the BSE, the stock reaches a high of Rs 1,170, adding around 2.68% to its previous market close of Rs 1,139.50 points.
On the Nifty index, Titan stocks were also the top gainer for the day. Meanwhile, the BSE Sensex dropped lower, going down by 800 points after losing 1.93% from the previous close to settle today at 40,657.00 points.
On the traded volume front, the share was also trading over the average volume of 5, 10, and 30 days, recording 1.20 lakh shares. The rise in Titan’s stock price is in line with the 1.59% increase in the Other Apparels and Accessories sector.
Titan is the largest stocks under the portfolio of Rakesh Jhunjhunwala, an ace investor.
Based on an exchange filing report, the jewelry company said that it recorded an 11% growth on its jewelry profit, which is in line with its revised outlook for the second half of the 2019-2020 period. Titan also reported that it had reached a better than expected sales growth in its retail jewelry during the festive season. Based on its report, the company’s profit has picked up at the beginning of the three-month period between November to January, mainly because of the wedding season.
However, the sales growth for the watches and wearables division of the company for the third quarter was mainly unchanged from its sales from the previous year. Titan said that the watches market itself was projected to have dropped by around 4%, largely because of poor customer sentiment and the sharp decline of e-commerce channels and primary sales.
Meanwhile, the eyewear business of Titan grew in revenue by around 2% following a disruption in the second half of December because if the protests that affected the sales after two quarters with strong sales data. But according to the filing, the growth for the year, overall, has reached to an optimistic 14%.
Further, the subsidiaries TEAL also recorded a massive increase in revenue for the third quarter at around 55% and a 65% increase for the sales of CaratLane. The fragrances section of the business was also positive as it recorded 20% in sales revenue compared to the numbers from the same period the previous year.
Meanwhile, gold prices continued to surge upward on Monday amid the escalating geopolitical tensions.