Why Titan Share Price is Falling

In the past couple of weeks, bears have been giving a hard time to the bulls. The Indian stock market is struggling to close in the green.

Titan, an Indian luxury products company that mainly manufactures fashion accessories such as jewellery, watches, and eyewear, has also experienced pressure.

The stock has fallen by 3.9% in the past 5 days.

Let's dig deeper to find what can be the probable cause for the fall...

#1 Weak Quarterly Results

Titan reported a marginal increase in revenue for the March 2022 quarter, at Rs 7.2 bn compared to Rs 7.1 bn reported in the year ago period.

The net profit of the company also plunged by 20.1% to Rs 491 m compared to Rs 592 m a year ago.

Let's have a look at the financial sheet of Titan.

Financial Snapshot

Particular	Mar-21	Jun-21	Sep-21	Dec-22	Mar-22
Revenue (Rs in bn)	7.1	3.2	7.1	9.5	7.2
Net Profit (Rs in m)	528	60	640	987	491
Net profit Margin (%)	7.41	1.87	8.9	10.3	6.7

Data Source: BSE

This quarter's results don't paint a pretty picture for the company and the impact of this is visible on the stock price.

#2 Consumer durables sector under pressure

Over the last month, the entire consumer durables sector has come under pressure with the BSE Consumer Durables Index falling over 5.4%.

Almost all the big consumer durables firms have experienced a downfall.

Let's have a look at how big players of consumer durables reacted in last 5 days.

Sector effect

Company	Fall (%)
Titan	3.9
Blue Star	5.7
Havells	5.6
Crompton Greaves Consumer Electrical	3.5
Whirlpool of India	5.6

Data Source: Equitymaster

The BSE Consumer Durable index last closed at 36,276 down by 0.2% and is down by 4.5% in the last week.

As a result, Titan's shares also fell.

How the stock of Titan has performed recently

The stock is down over 3% in the last five days.

Over the last month, shares of the company are down by 2.1%. However, in the last year they have gained about 24%.

The stock hit its 52-week high of Rs 2,767.6 on 21 March 2022 and a 52-week low of Rs 1,661.9 on 20 July 2021.

Titan is listed among the top overvalued stocks in the market, with a PE ratio of 86.7 and a market cap of Rs 1.9 tn.

As of March 2022, promoters held a 52.9% stake in the company, with no shares having been pledged.

About Titan

Titan was founded in 1984 as a partnership between the Tata group and the Tamil Nadu Industrial Development Corporation Ltd (TIDCO).

The company is a market leader in both of its key product categories - timepieces and branded jewellery.

Titan's watch brands include Titan, Sonata, Fastrack, and Raga while its jewellery brands include Tanishq, Mia, Carat Lane, and Zoya.

Precision engineering, prescription eyewear, accessories, perfumes, and ethnic clothing are among its other commercial interests.

In 2013, the firm also introduced a new perfume line called Skinn.

The Tata group and TIDCO own approximately 25% and 28% of Titan's equity shares, respectively.

To know more about the company, check out Titan company fact sheet and quarterly results.

You can also compare Titan with its peers.

Titan vs Kalyan Jewellers

Titan vs Thangamayil Jewellery

Titan vs Goldiam International

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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