Titan Industries spurted 8.48% to Rs 281.50 at 15:22 IST on BSE after a foreign brokerage upgraded the stock to buy from hold after the company's strong Q1 June 2013 results.
Meanwhile, the S&P BSE Sensex was down 127.49 points, or 0.66%, to 19,189.70.
On BSE, 5.78 lakh shares were traded in the counter as against an average daily volume of 4.67 lakh shares in the past one quarter.
The stock hit a high of Rs 282.30 and a low of Rs 263.20 so far during the day. The stock had hit a 52-week low of Rs 200 on 13 June 2013. The stock had hit a record high of Rs 313.60 on 30 November 2012.
The stock had outperformed the market over the past one month till 1 August 2013, rising 14.12% compared with the Sensex's 1.33% fall. The scrip had, however, underperformed the market in past one quarter, sliding 4.16% as against Sensex's 0.96% fall.
The large-cap company has an equity capital of Rs 88.78 crore. Face value per share is Re 1.
The brokerage said the Reserve Bank of India's recent measures to tighten gold imports seem to have had little impact on organised retail players in the country, drawing comfort from Titan's positive earnings.
The brokerage noted that organized players like Titan could get preference over unorganized players to get access to the imported gold for domestic sales due to their better relations with the nominated agencies/banks.
Titan Industries' net profit rose 16.9% to Rs 182.48 crore on 42% growth in sales income to Rs 3087.79 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced during trading hours on Thursday, 1 August 2013. Shares of Titan fell 1.46% to Rs 259.50 on that day.
All businesses of the company have recorded growth in first quarter. Jewellery income grew 47.2% to Rs 2614.16 crore in Q1 June 2013 over Q1 June 2012. The high growth in jewellery business was fuelled by a sharp drop in price of gold in April and a good wedding season during the first quarter.
The watches business recorded a 11.4% rise in income to Rs 401.65 crore in Q1 June 2013 over Q1 June 2012. Discretionary spend has been under pressure and had an impact on growth of watches business.
The company's other businesses, Eyewear, Precision Engineering and Accessories grew by 37.5% to Rs 123.21 crore during the period under review.
Retail expansion continued with a net addition of 15 stores across all its businesses in first quarter, ending the period with a retail area of over 1.3 million square feet nationally. The company's retail chain is 968 stores strong, as on 30 June 2013 and is expanding with growth plans in place for all its retail businesses - watches, jewellery and eyewear.
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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