Second wave of Covid-19 is a setback for fiscal year 22 business plans, according to Titan; CLSA downgrades its rating and recommends SALE – Know WHY
A day after releasing its quarterly update, brokerage firms are skeptical of Titan shares. The company said on Tuesday that the second wave of covid is a setback for the FY22 business plan.
The Tata Titan group company said the second wave of Covid turned out to be a setback for its business plans for fiscal year 2022 which had been crafted with great ambition, enthusiasm and passion.
The trading company, however, said it is moving forward with “calm and composure” and is confident it will overcome any challenges.
In this regard, CLSA maintains a sell call on Titan and lowers the target to Rs 1,370 per share from Rs 1,760.9 each at the previous close. He said Titan had muted the high-end recovery hampered by the second wave of Covid-19. It has been adjusted for bullion sales, and overall sales are expected to increase by 51%.
Likewise, Morgan Stanley maintains an even weight call on Titan shares and also lowers the target to Rs 1,358 per share. The brokerage says jewelry sales are up 37% from the first wave of covid, as well as non-jewelry business saw a rapid pickup in walk-in visits when it reopens.
In its annual report for fiscal years 2021-22, the company said it expects much of the country to be vaccinated by September 2021, paving the way for some sort of normalcy in the environment. Business.
The second wave of COVID-19 has arrived and rolled back those plans, but without removing the medium-term opportunities and benefits that these plans represented, ”commented his report in terms of the company’s outlook for this fiscal year in Classes. .
The meter closed Tuesday up about 1% to Rs 1,763.30 on BSE, against a 0.04% drop in S&P BSE Sensex on Tuesday.