Titan enters the ₹2 trillion club as gold jewellery and watches are back in vogue with the return of weddings and unbridled festivities
- Shares of
Titanjumped 10% hitting 52-week high as company witnesses strong demand recovery after the second wave across its businesses.
- The company’s jewellery, watches and eyewear business grew by 78%, 73% and 74% on year in September quarter.
- Check out the latest updates on Business Insider.
News of a comeback in sales brought a wave of excitement for the investors of watches and jewellery retailer, Titan. Shares of the company rose as much as 10% crossing the ₹2 trillion mark in market capitalisation.
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Footfalls at malls and large format stores, for the chain, are still at 65% and 70% of pre-pandemic levels respectively. But sales growth looks good partly due to pent up demand and partly due to the low base last year.
The company’s jewellery, watches and eyewear business grew by 78%, 73% and 74% on year in the September quarter.
“The demand postponement triggered by the second wave of the pandemic in avenues like gift purchases, occasions I milestone buying, weddings, investments in gold etc. witnessed a strong comeback in Q2,” said the company in a statement to exchanges.
As festivities come near large fashion accessory companies like Titan witness a strong demand recovery pushing sales almost back to pre covid levels. With covid restrictions easing down, stores become fully operational in most of its stores known for selling luxurious products.
Analysts believe that Titan is growing its jewellery business as there lies a huge scope of revenues. “Titan is targeting to gain market share in the Jewellery segment due to strong focus on wedding segment, huge scope for store expansion (40-50 stores every year), and gold harvest & gold exchange schemes. Further, the shift from unorganized (currently 70%) to organized (currently 30%) in the Jewellery segment will benefit branded players like Titan due to strong brand positioning and superior quality. Thus, we are positive on stock,” said Amarjeet Maurya, AVP - Mid Caps at Angel One.
The craze around digital gold has also helped the Tata Group company gain some traction to its products. Titan’s feature to convert digital gold into jewellery later has received good response.
“Digital Gold is a new pilot offering that helps customers purchase gold online and lock-in the gold prices with an ability to convert it into jewellery at a later stage. The early response has been good with enrolment of many digitally-savvy young customers,” said the company.
Return of demand in gold is also because of the reportedly fall in bullion’s prices.
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