Titan Company shares down 2% as COVID-19 hits businesses

The company said the lockdowns posed challenges to all its businesses.

The Titan Company share price was trading 2 percent lower in intraday on May 27. The company said the coronavirus-induced lockdown posed challenges to all the businesses.

The stock, which has declined more than 30 percent in the last three months, was quoting at Rs 878.15, down Rs 15, or 1.68 percent, at 0957 hours.

It has touched an intraday high of Rs 890 and an intraday low of Rs 868. It was also one of the top index losers.

"The lockdowns and restrictions imposed on various activities due to COVID-19 pandemic have posed challenges to all the businesses of Titan Company Limited and its subsidiaries," the company said in a filing to the exchanges.

"The company's operations were hit substantially from March 17, 2020 till the first week of May 2020, when lockdown was gradually lifted."

The company was able to get only "very marginal sales" through its online channel at the end of April but delivery has been affected due to the classification of its products as non-essential, it said.

Global research firm Morgan Stanley has maintained its underweight stance on the stock. Though 43 percent of the stores have reopened, sales remain below normal, CNBC-TV18 reported.

Given macro and business headwinds, demand revival will take time, it said. The company needs to have higher activation programmes in 2020 to attract customers, the research firm said.

According to Moneycontrol technical analysis, the rating is bearish.

Disclaimer: The views and investment tips expressed by experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
Download a copy Get best insights into Options Trading. Join the webinar by Mr. Vishal B Malkan on May 28 only on Moneycontrol. Register Now!