Titan Industries recovers from 52-week low on bargain hunting

Meanwhile, the S&P BSE Sensex was down 172.65 points or 0.91% at 18,871.01.

On BSE, 14.19 lakh shares were traded in the counter as against average daily volume of 10 lakh shares in the past one quarter.

The stock hit a low of Rs 200 so far during the day, which is also its 52-week low. The stock hit a high of Rs 218.30 so far during the day. The stock had hit a record high of Rs 313.60 on 30 November 2012.

The stock underperformed the market over the past one month till 12 June 2013, falling 28.93% compared with the Sensex's 5.37% decline. The scrip had also underperformed the market in past one quarter, sliding 15.42% as against Sensex's 2.68% fall

The large-cap company has equity capital of Rs 88.78 crore. Face value per share is Re 1.

Shares of Titan Industries have been on a declining spree recently, sliding 31.9% in nine trading days to Rs 204.90 on 12 June 2013 from a recent high of Rs 300.90 on 30 May 2013. The decline in the scrip gathered momentum after the company during trading hours on 11 June 2013 issued a statement on Reserve Bank of India (RBI)'s clarification on gold imports.

Titan Industries said that the RBI has clarified that all imports of gold for domestic consumption, either through banks, nominated agencies or directly can be made only with 100% cash margin. The RBI has also clarified that credit of any kind from suppliers or bullion banks for import of gold for domestic use is prohibited, Titan said. This will affect import of gold through all non consignment routes like gold on lease/loan, Titan Industries said. Titan imports gold for its retail gold jewellery business.

Titan said it had sought some clarifications on gold imports after the RBI issued a notification on 4 June 2013 on changes to the current terms governing import of gold in India.

Titan Industries' net profit surged 28.2% to Rs 184.97 crore on 14.8% growth in net sales to Rs 2593.13 crore in Q4 March 2013 over Q4 March 2012.

Titan Industries retails branded gold jewellery under the brand name Tanishq. It sells watches under a premium brand Titan and economy brand Sonata.

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