Shares of Indian jeweler Titan Company surged by as much as 5% on Tuesday, making it the second-biggest gainer on the benchmark Nifty 50 index. This rise in stock price was driven by strong demand for higher-priced jewelry and gold coins, which boosted the company’s quarterly revenue by 25%.
By 11:20 AM IST, Titan’s shares had increased by 3.4%, reaching 3,126 rupees, while the Nifty 50 index saw a gain of 1%.
In the January-to-March period, Titan’s stock had underperformed relative to the broader market. Analysts had expressed concerns that the record rally in gold prices could negatively impact demand in Titan’s core jewelry business, which includes both plain and studded ornaments as well as gold coins.
Despite high gold prices, affluent Indian consumers continued to indulge in luxury jewelry purchases for weddings and invest in gold as a secure financial asset.
Titan’s fourth-quarter standalone revenue growth was approximately one percentage point higher compared to the third quarter and about eight percentage points higher than the same period last year. The company credited the revenue increase to a “high double-digit growth” in the premium segments of its jewelry line.
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