Shares of Titan were trading 1.5% lower on Wednesday after the company said its year-on-year drop in jewellery revenue in June was around 30%. This was after an 80% drop in retail jewellery sales in May.
Titan said it has re-opened around 83% of its stores across all businesses as of the end of June. Company's jewellery division has reopened around 95% of its Tanishq stores till date.
Following the news, Titan stock opened higher at Rs 1,028, but soon erased gains and traded 1.43% lower at Rs 1,028, its day's low. The stock earlier settled at Rs 1,016 on Tuesday.
Titan stock price has fallen 1.19% in one month, 15% year-to-date and 19% in one year. Market capitalisation of the firm stood at Rs 89,435.58 crore as of today's session.
The stock has fallen after 4 days of consecutive gain. Titan stock trades higher than 5, 20 and 50-day moving averages but lower than 100 and 200-day moving averages.
Abhijeet Ramachandran, Independent Analyst/ Co-Founder and trainer at Tips2trade said, "More than 3/4th of Titan's stores have reopened and this should really help in restoring decent results for this quarter. Having said that, Rs 1,025 continues to be an immediate and strong resistance. A dip till Rs 985-960 should be used to buy for higher targets of Rs 1145-1190 in the coming months."
Commenting on its jewellery division, the company said, "Revenue in May and June were slightly below 20% and around 70% lower compared to the corresponding periods of the previous year. The division also sold gold in the bullion market worth Rs 610 crore at market rates to optimise the inventory levels".
As per its regulatory filing, watches and wearables division's revenue in May and June were at 5% and marginally over 20% compared to the corresponding months of the previous year.
For its eyewear division, Titan's revenue in May and June months were at 15% and 35% compared to the corresponding months of the previous year.
"However, production levels are low now, given the inventory situation and will be ramped up only gradually when the company sees sales picking up to normal levels," Titan added.