Titan Company Ltd shares slumped as much as 9.5 per cent on Friday, heading towards their biggest daily fall since August 2013, after the jewellery and watch retailer’s January-March results lagged some analysts' estimates.
Titan has cut prices to boost jewellery sales and cut competition. There could be some earning downgrades the company will see— Rajalakshmi Nirmal (@crajalakshmic) May 8, 2015
Investment bank Credit Suisse has downgraded the stock to “neutral’’ from ‘outperform’’ and cut its target price to Rs 390 from Rs 430.
Titan down by over 7% on weak March quarter numbers. Both the watch and jewellery business reported a sharp drop in volumes— Rajalakshmi Nirmal (@crajalakshmic) May 8, 2015
Change in the pricing strategy to increase long-term consumer franchise may hurt the company in the short-term, the bank said.