Titan posts its best weekly gain in 6.5 years after strong quarterly profit

what happened

Shares of India's Titan rose more than 3% on Friday to 4,981.30 rupees, their seventh straight daily gain. The stock climbed nearly 13% over the week, the largest weekly move since April 2020, Reuters reported. Titan was also among the top three gainers on the Nifty 50, which was up 0.42%.

Investors responded to a second-quarter profit that more than doubled to 23.93 billion rupees, far above the 14.73 billion rupees analysts expected, according to LSEG data. Excluding a non-operational accounting gain, profit grew 54%. Earlier, high gold prices had held back jewellery purchases in India, where volumes fell 20% in the September quarter per the World Gold Council, even as spending rose 16%. Titan said softer gold prices were pulling customers back into stores.

Jefferies turned bullish, moving its rating from hold to buy, and lifted its target to 6,000 rupees from 5,000. Emkay Global noted that underlying margins at the main jewellery business rose 60 basis points to 11.7%.

why it matters

For Indian markets this points to jewellery demand stabilising as gold prices ease, and Titan is a key bellwether for the country's consumer names. Since it is a single large company, the effect is mainly on its own shares and nearby consumer stocks.

market impact

Titan shares: the profit beat and returning buyer demand support the stock and the sector mood.

• ▲Titan shares pressure up — the profit beat and hopes for returning buyers support the stock

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