Titan hits fresh high on expectations of robust March quarter earnings

The stock hit a new high of Rs 487, rallied 49% since January 2017, against 12% rise in the Sensex.

Shares of Titan Company  rallied 6% to Rs 487, also its fresh high on the BSE, after the company said the demand scenario in Q4 (January to March) quarter for the firm had improved and sales across its divisions had been good, pointing to a strong earnings period ahead of its Q4 results.

The second half (October-March) of the financial year 2016-17 (FY17), however, exceeded expectations on all counts despite the serious regulatory impact in the form of demonetisation.

“The consumer sentiment as well as demand scenario recovered quite significantly (post demonetization) by the beginning of Q4 FY 16-17 and sales were good for all divisions by varying degrees,” Titan Company said in a quarterly update.

Control on costs along with strong growth in top line and gross margins will enable the company to show a very good growth in bottom line for the quarter and consequently for the year as well, a Tata Group company added.

Titan said, while the Goods and Service Tax (GST) rates are yet to be announced and a high rate for jewellery might have some effect on the company growth, it believe that the formalization of the economy bodes well for all the divisions of the company and with a whole lot of initiatives planned for the coming year, the company is optimistic of top line growth in the high teens in the coming year.

At 09:36 am; the stock was up 5% at Rs 485 as compared to 0.03% decline in the S&P BSE Sensex. A combined 974,531 shares changed hands on the counter on BSE and NSE so far.

Since January 2017, the stock appreciated by 49% against 12% rise in the benchmark index.