Titan Shares Fall 5% After Q1 Business Update Disappoints; Market Cap Sheds Rs 17,000 Crore

Titan Co. shares fell over 5% during early trade on Tuesday, to their lowest in three weeks, after the first-quarter revenue growth came below market expectations.

The stock was the top loser on the benchmark Nifty 50 index. Its market capitalisation lost over Rs 17,000 crore.

The consumer businesses registered a growth of 20% year-on-year in the June quarter. Its jewellery division, which contributes over three-fourths of its revenue, reported an 18% growth.

"The revenue growth was impacted by gold price volatility, with customers favouring lightweight and lower karatage jewellery," Titan said in a regulatory filing to the stock exchanges on Monday.

Analysts at JPMorgan said that the moderation in the Tata Group company's revenue growth was 'worse than feared'.

Moderation in like-to-like growth to early double digits and being lower than peers, such as Kalyan Jewellers and Senco Gold were disappointing. The next catalyst for Titan could be the earnings print.

Besides, Citi noted the continued decline in the studded mix and said operating margin will now be key to sustain current valuations.