Shares of Titan Company hit a new high of Rs 2,840.60 in intraday trade on Tuesday, up 1% on the BSE. The stock has risen 6% over the past week, compared with a 1.5% gain for the S&P BSE Sensex, amid a steady business outlook. Titan has outperformed the market so far this year, gaining 10% compared with a 3% gain for the benchmark index.

Titan is a joint venture between Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO). Titan is a market leader in the domestic branded jewellery industry (with brands such as Tanishq, Zoya, Mia and Caratlane) and domestic watches (with brands such as Titan, Fastrack, Sonata and Xylys).

Titan delivered better-than-expected revenue growth in the March quarter of FY22-23 (Q4FY23), driven by strong demand trends in the jewellery and watches segment.

The company’s standalone jewellery sales rose 24% year-over-year from a slightly lower base, helped by a 19% year-over-year increase. The company highlighted that new buyer growth was 15%, while average ticket prices rose 8%. The jewellery industry’s four-year growth rate remains strong at 24% through the end of the fourth quarter of fiscal 2023.

Another positive in the fourth quarter was a 29% increase in sales of set jewellery, supported by promotional activities. This segment is more profitable and now accounts for 33% of jewellery sales, up 100 basis points (bps) year-over-year. However, this is still below the pre-pandemic level of 37%.

Overall consolidated revenue rose 33% year-on-year to Rs 10,360 crore. EBITDA margin increased 30 basis points year-over-year to 10.5%. Absolute EBITDA grew 37% year-on-year to Rs 1,089 crore. The company’s profit after tax rose 39% year-on-year to Rs 736 crore.

ICICI Securities reiterates the “buy” rating with an adjusted target price of Rs 3,240. Prabhudas Lilladher maintained his “buy” call on Titan with a target price of Rs 2,992 per share.