Titan share price gains about 2%. Should you buy, sell or hold the stock? Check brokerage views

livemint.com:

Titan Company share price opened with gains of almost 2% on on the BSE on Monday after it reported a better-than-expected September performance led by margins beat. Tata owned-jewellery and watch maker, on Friday had reported a 9.7% YoY rise in its net consolidated profit to ₹916 crore in the September quarter of FY23-24 There was a 21.2% sequential rise in the Titan net profit from ₹756 crore reported in April-June quarter of FY24. Titan’s total consolidated income increased by 37.17% to ₹12,653 in September quarter of FY24, against ₹9,224 crore reported in Q2 FY2022-23.

Following better than expected performance CLSA has upgraded its recommendation on Titan to Buy. Titan reported net profit came 8% higher than Bloomberg consensus estimates with 19.1% jewellery growth, said analysts at CLSA. Watches also saw strong 32% YoY growth.

Margins were lower year-on-year but better than expected. Titan is looking to accelerate expansion into two new large markets, luxury and overseas, which CLSA believes increases its addressable market significantly. They have upgraded their rating from Outperform to BUY on Titan.

Also read- Titan Company Q2 Results: Net profit increases by 9.7% to ₹916 crore Nuvama Institutional Equities, said that Titan reported a strong Q2FY24 showing with Ebitda outperformance of 9% and 15 to their and consensus estimate. Jewellery EBIT margin at 14.1% (ex-bullion) were better than their estimate of 13%, which is comforting, particularly after the concerns post-Q1FY24. The Brokerage will watch out for growth edging down in October due to the ‘shift’ of Shraad and spike in gold prices and Titan escaping the fallout of the dip in diamond prices though management expects little impact on margins and is