Even as consumer discretionary major Titan Company missed analysts’ estimates for the December ended quarter, a clutch of top brokerages retained their rating on the stock. Goldman Sachs and Nuvama reiterated their buy views, with the former expecting the Tata company to sustain its market share gains. Kotak Institutional Equities recommended an ‘Add’ while US brokerage Jefferies maintained a ‘Hold’ view.

On Thursday, Titan reported a 9% year-on-year (YoY) growth in its standalone net profit at Rs 1,040 crore in the third quarter. It was Rs 951 crore a year ago. The profit figure was lower than the ET NOW poll estimate of Rs 1,159 crore. Revenue from operations jumped 20% YoY to Rs 13,052 crore in the reporting quarter, compared with Rs 10,875 crore in the last year quarter.

Read more: Titan Q3 Results: Net profit rises 9% YoY to Rs 1,040 crore, misses estimates

Here’s what brokerages recommended:

Goldman Sachs: Buy | Target: 4,075
Goldman Sachs has reiterated a buy on Titan while it slashed the target price to Rs 4,075 from Rs 4,125. The brokerage in its post-earnings stock review said that the strong jewellery performance continued in Q3. In Goldman’s view, competitive intensity remains high in jewellery but Titan continues to gain market share.

Nuvama: Buy | Target: 4,106

Nuvama has retained a buy view on Titan stock for a price target of Rs 4,106. “We adjust FY24 PAT lower by 4% and rolling over to FY26 yields a target price of Rs 4,106,” Nuvama said as it sees risks to earnings mainly from jewellery margin trends.

Titan posted an 11% miss in consensus earnings driven by weaker margins in jewellery and watches and wearables. The jewellery margin miss was due to a lower studded ratio and higher competitive intensity given the gold price spike. Marketing and investments were another important reason for margin miss, Nuvama note said.

“While there is a divergence in performance across Titan’s segments, it highlighted that January Jewellery demand stayed strong,” Nuvama said.

Kotak Institutional Equities: Add | Target: 3,750

Kotak tweaked its estimates and revised the fair value to Rs 3,750 from Rs 3,775, implying 60X FY2026E PE as it recommended an Add view. Overall, topline growth was robust, but the margin print and studded share were a tad weak, Kotak said. 3QFY24 EBIT margin was a miss across businesses. Strong category tailwinds and market share gains drive robust jewellery growth.

Jefferies: Hold | Target: Rs 3,600

Jefferies has maintained a ‘Hold’ view on the counter on rich valuations as it cuts the target price to Rs 3,600 from Rs 3,650. The Q3 quarter saw a margin miss, though 20% growth appears strong in the current context, this brokerage said. Jewellery margins remained in a band while watches and eyecare exhibited high volatility. Management remains confident in its outlook and displayed strong execution on growth, Jefferies said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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