Citigroup downgrades Titan to neutral, revises target price to Rs 1,370

Citigroup has downgraded Titan Company to neutral in the long term from buy and revised target price to Rs 1,370 from Rs 1,175. Shares of Titan ended down 2.4% at Rs 1,229.65 on Wednesday while BSE Sensex closed 645.97 points up at 38,177.95.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 5095.10 crore, up 5.63% from last quarter sales of Rs 4823.49 crore and up 15.63% from last year same quarter sales of Rs 4406.57 crore. The company has reported net profit after tax of Rs 364.66 crore in the latest quarter.


Investment Rationale

The brokerage said it believes in Titan’s market share gain story as management executes its strategic initiatives well, and business challenges for smaller competitors continue. But, the stock outperformance prices in midterm upsides; in fact, nearterm market weakness could adversely impact the elevated expectations.