Should investors eye Titan or fastrack profit booking post Q1 earnings?

economictimes.indiatimes.com:

Titan Company fell 3% to the day's low of Rs 2,886 on the NSE in Thursday's early trade after the jewellery maker reported a 2% year-on-year (YoY) decline in the June quarter net profit on Wednesday.Tata Group's fashion and lifestyle products retailer Titan reported its standalone profit after tax at Rs 777 crore for the quarter ended June 2023. Its quarterly revenue jumped 19% YoY to Rs 10,306 crore. Both figures were below the Street estimate.

During the quarter, the company's margin fell 239 bps to 9.9%. While seasonality and muted discretionary spending took the sheen off the April-June quarter performance, British brokerage HSBC backed the stock with a buy rating. Motilal Oswal relies on its 'impressive' track record while suggesting a buy rating.

Meanwhile, Nuvama called it one of its top picks in discretionary spending space. The brokerages estimate an 11-20% upside. Meanwhile, HDFC Securities initiated a 'Reduce' rating.

Here is what brokerages said about the Titan stock:HSBC: Buy | Target: Rs 3,580 Notwithstanding the margin miss which HSBC called «tactical», the brokerage maintained a 'Buy' on the stock with a price target of Rs 3,580. It remains bullish on the Tata Group stock and relies on its «winning jewellery business» and strong growth outlook. A double-digit growth was seen in many of its business divisions.