Titan’s Q2 jewellery growth slows to 21% from 43%

Titan Company Limited said on 6 October that its jewellery business grew nearly 21 percent in the quarter ended 30 September. The company added about 78 stores in the quarter, taking its retail network to 3,758. Titan’s jewellery and profit numbers (company, Q1 FY27 and Q2 update): Q2 FY27 jewellery growth: nearly 21 percent YoY Q1 FY27 jewellery growth: 43 percent YoY Q1 FY27 PAT: Rs 1,777 crore, up 63 percent, including a Rs 407 crore one-time gain from higher customs duty on gold Growth slowed by about half. Management credited Q1 to stable gold prices and Akshaya Tritiya demand. The one-time gain also flatters the profit base, so the clean growth rate is lower than 63 percent. Titan [][***** trades at Rs 4,385.98 at 1:22 PM IST today on StockGro, up 0.5 percent. The NSE closed at Rs 4,400.00 on 12 October. The stock is down 11.4 percent over a month. The NSE 52-week range is Rs 3,460.00 to Rs 5,186.70. At 68 times trailing earnings, against a sector P/E of 49, the price already assumes the growth holds. My view: hold, not a fresh entry. The business still grows fast, but Q1 profit carried a Rs 407 crore one-off. Strip it out and Q1 profit is Rs 1,370 crore; annualised, that is a P/E near 71, not 68. At that multiple the stock needs jewellery growth to stay above 20 percent. I want Q2 jewellery growth at or above the 21 percent in the update, a Q2 profit line without a one-off, and gold prices steady. Without all three, no fresh money. My exit is a close below Rs 3,460, the NSE 52-week low. I watch the Q2 result, whose date I could not confirm, and gold prices. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.