Titan Company drops 10% on poor H2 guidance

NEW DELHI: Shares of Titan Company tanked nearly 10 per cent in Wednesday’s trade after the jewellery maker lowered its revenue guidance to 11-13 per cent for the second half of the ongoing financial year from 20 per cent earlier.

The scrip declined to hit a low of Rs 1,150 on BSE, as a host of brokerages cut their price targets on the counter.

Goldman Sachs maintained neutral rating on the stock with a revised target of Rs 1,083 from Rs 1,108 earlier.


Credit Suisse’s target of Rs 1,110 factors in 8-10 per cent cut in FY20-22 earnings estimates. Besides, Phillip Capital has cut price target on the stock to Rs 1,125 from Rs 1,165.

CLSA even downgraded the stock to sell with a fresh target of Rs 1,025. The most bullish among all -- UBS maintained a buy call on the stock with a revised target of Rs 1,525. It had a target of Rs 1,600 before.

Analysts have largely cut their FY20 earnings forecast for the Tata Group firm by 4-10 per cent.

Publicly available data with Reuters suggests a number of brokerages recommending ‘outperform’ on the stock has fallen to ‘nine’ compared with 17, three months ago. Brokerages recommending ‘Hold’ rating on the stock has climbed to 10 from just 4 a month ago and 3 three month ago.

The shares of the company closed 9.96 per cent lower at Rs 1156 on BSE.