Titan slips 1% after Morgan Stanley downgrades stock to 'equal weight'

Titan Company shares dipped 1.5 per cent to Rs 1,308 in early morning trade on the BSE on Thursday after global brokerge firm Morgan Stanley downgraded the stock from 'Overweight' to 'Equal Weight'.

The financial services firm cited its reluctance to push multiples beyond current levels and less room for positive surprises from Titan in coming quarters as the reasons for the downgrade, as per a report by CNBC TV18.

However, "the company (Titan) is one of our favourite long-term plays", Morgan Stanley said, adding that it sees balanced risk-reward from the stock at current market price.

Titan Company's main business lines are watches, jewellery and eyewear. As on 31 March 2019, the company had 1,595 stores, with over 2.05 million square feet of retail space.

Thus far in the calendar year, the stock has outperformed the market by surging 43 per cent, as compared to a 10 per cent rise in the benchmark S&P BSE Sensex till Wednesday.

At 9:46 AM, the stock was trading 1.2 per cent lower at Rs 1,312.15 as compared to a 0.3 per cent gain in the benchmark S&P BSE Sensex.