Titan shares fell up to 3% to Rs 3.133 on Wednesday a day after the company reported that its consolidated profit for the quarter ended September 2024 fell 23.1% to Rs 704 crore year-on-year (YoY) mainly due to impact of customs duty reduction.During the quarter, Titan's total income rose 26% YoY to Rs 13,660 crore.The profit figure was lower than Street estimates of Rs 900 crore as reflected in a poll by ET Now while the revenue was higher than estimates of Rs 12,350 crore.Should you buy, sell, or hold Titan's stock? Here's what analysts say:InvestecInvestec has maintained a 'Hold' rating on Titan, cutting its target price to Rs 3,822 from Rs 4,100.The results were below expectations even after adjusting for the inventory impact due to the customs duty cut. Jewellery margins have been disappointing, impacted by increased competitive intensity and a weaker product mix. Investec believes there is a risk that this trend may extend into FY26E, which could lead to further earnings cuts.Goldman SachsGoldman Sachs maintained a 'Buy' rating but has revised its target price to Rs 3,650 from Rs 3,750.For Q2, there was a cut in margin guidance, although the growth outlook remains strong. The jewellery segment saw robust growth in Q2, and the festive season in Q3 has also been positive. While the studded mix dropped, studded growth remained healthy.Management noted that lab-grown diamonds have not had a material impact on their business. However, jewellery margins were below expectations, prompting the management to lower its margin guidance for FY25 by approximately 100 bps.JefferiesJefferies maintained a 'Hold' rating on Titan but has reduced the target price to Rs 3,400 from Rs 3,600, citing an expectedly weak outcome. While the cut in custom duties helped boost jewellery growth, it negatively impacted margins. The adjusted margin was also weaker due to an inferior product mix, with a lower proportion of studded jewellery.Overall, Q2 results, though in line with muted expectations, were still below consensus estimates. The company's reduced guidance for jewellery margins, partly due to weak demand for solitaires, is expected to be viewed negatively.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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