Titan company shares in intraday trade on Tuesday was dragged lower by over 13%, its highest one-day loss since 2013, after the company's Q1FY20 updates point to a subdued growth of its jewellery segment due to higher prices of gold. The sentiment further weakened after Morgan Stanley and Credit Suisse downgraded the stock.
Morgan Stanley has downgraded Titan to 'equal-weight' from 'overweight' with a target price of Rs 1,300/share while Credit Suisse downgraded the stock to 'neutral' from 'outperform' with target unchanged at Rs 1,250 per share.
On the BSE, the stock of Titan registered an intra-day low price of Rs. 1078 and a high of Rs.1175.55.
In its press release on Monday, the company said during the quarter consumption took a hit amid tough macro-economic environment. Further, growth in the segment was impacted due to very high prices of gold particularly in the last month i.e. June. Nonetheless, despite lower than estimated growth primarily in the jewellery business, the company managed to retain the gains in its market share.
At 10:21 am, the stock of Titan fell further lower to Rs. 1081.50, down Rs. 171.15 or 13.66%.