Titan Company share price was the top Sensex loser in early trade today despite the firm reporting 21% rise in net profit amid coronavirus lockdown. Share price of Titan Company fell 2.7% to Rs 992.90 against previous close of Rs 1,019.50 on BSE. Market cap of the firm stood at Rs 90,793 crore. The large cap stock trades higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.
Share price of Titan Company has gained 21.71% in the last one month. The stock is down 14.62% since the beginning of this year and fallen 19.93% during last one year.
Total 2.43 lakh shares of the company changed hands amounting to turnover of Rs 24.64 crore.
The gems and jewellery maker said standalone net profit rose to Rs 357 crore in Q4 against Rs 294.6 crore in the same quarter last year. The firm cited strong operating performance and low base in the year-ago period for the rise in Q4 profit.
However, higher tax expenses (a rise of 58 percent YoY) limited bottom line growth. Revenue from operations declined 5.2 percent to Rs 4,428.75 crore during the March quarter.
After better-than-expected Q4 show, Credit Suisse gave a target price of Rs 1060 to the stock.
Margins in Q4 were better than expected. The management commentary signals encouraging consumer response post reopening which augurs well for the company, the brokerage said.
Morgan Stanley said it was underweight on the stock with a target price of Rs 770. The brokerage said 4QF20 earnings were better than expected, driven by higher gross margins and lower expenses. Demand recovery will be the key for the firm.
The firm closed its stores across the country during the nationwide lockdown. Titan said it clocked nearly zero sales during the last two months of lockdown.
"In last 2 months, the company's operating cash flow was negative due to virtually zero sales during the first 6 weeks of lockdown, increase in mark-to-market cash outflow on gold hedge due to rising gold prices and committed costs being incurred,"the firm said. PM Narendra Modi announced nationwide lockdown on March 24 to contain the rising number of coronavirus cases.