Titan slips on reports lower PAN requirement to hurt sales

According to a report, the company expects to take a hit of Rs 500 crore with the revised PAN threshold limit

Shares of Titan were down over 1% at Rs 339 on the Bombay Stock Exchange amid reports that the directive by the government to lower the transaction limit to quote PAN to Rs 2 lakh from Rs 5 lakh earlier would hurt sales in the current fiscal.

The company expects to take a hit of up to Rs 500 crore following the lower threshold limit, according to a Press Trust of India report. (Click here for the full report).

In a release last month the company said that the revised threshold could potentially affect the sale of the jewellery division for cash sales of individual products ranging from Rs 200,000-Rs 500,000. The cash transation in this category amount to less than 10% of the revenue of the division in the recent past.

The stock opened at Rs 344 and touched a low of Rs 338. At 10:30am, over 280,000 shares were traded on both the stock exchanges.