Consumer demand significantly picked up momentum following the reduction in customs duty on gold imports from 15% to 6%, leading to a strong double-digit increase in plain gold sales for the quarter, the company said.
Here’s what brokerages said to ETNow:
Morgan Stanley
Morgan Stanley maintains an equal-weight rating on the stock with a target price of Rs 3,570. According to the brokerage, there is an 80% probability that the share price will rise in the next 15 days. The jewellery segment’s revenue is expected to grow 16% year-on-year, driven by increased demand in July following the duty cut. This growth also reflects the high base effect from the delayed Pitru Paksh last October, which contributed to a significant improvement in overall growth.
Macquarie
Macquarie maintains an outperform rating with a target price of Rs 4,100. The brokerage noted healthy commentary on jewellery sales ahead of the Q2 update, with pre-Q2 sales surpassing estimates. Better-than-expected jewellery sales and strong growth in watches offset weaknesses in the eyewear and other segments. Macquarie expects 9% standalone EBITDA growth in Q2.
Investec
Investec maintains a hold rating with a target price of Rs 4,100. While a strong revenue print is expected, PAT growth is likely to be muted. The jewellery segment is experiencing good growth, but a weak studded mix could impact margins. The watches and wearables sector shows strong growth in analog sales, while the eyewear segment continues to lag behind the overall company growth. In the emerging business segment, double-digit growth is anticipated across various sectors.The non-solitaire studded segment recorded high double-digit growth, while the solitaire segment experienced a decline due to price uncertainty and demand-supply dynamics in international markets. This resulted in overall studded sales growth in low double digits for the quarter.
The launch of new collections, promotions, and various marketing campaigns drove buyer growth of 11% year-on-year. Like-to-like (secondary) sales growth for domestic operations came in the mid-teens.
Of the 23 new store additions (net) in India, 11 were in Tanishq, 11 in Mia, and 1 in Zoya. The watches and wearables domestic business grew 19% year-on-year, with revenue growth in analog around 25% year-on-year, supported by both volume and value increases.
Titan Eye+ saw a 6% YoY increase in its domestic business, with secondary sales growth nearly matching this figure and buyer growth rising marginally higher YoY. The brand added 2 new stores (net) in India during the quarter. Revenue in the fragrances and fashion accessories segments jumped 17% year-on-year, with fragrances growing by 19% and fashion accessories rising by 11%.