Titan share price extends gains on CCI approval for additional stake acquisition in CaratLane

Titan share price extended gains to hit a fresh all-time high on Wednesday, rallying for the sixth consecutive session. Titan Company shares gained nearly 1.17% to a new high of ₹3,434.00 apiece on the BSE.

Titan shares rose today after the company received approval from the Competition Commission of India to purchase an additional stake in its subsidiary CaratLane.

On November 21, Titan share price rose over a percent and crossed the market capitalisation of ₹3 lakh crore for the first time. Titan shares have gained over 11% in three months and are up more than 31% year-to-date (YTD).

Read here: Titan share price hits all-time high, market capitalization surpasses ₹3 lakh crore mark

The board of directors of Tata Group’s jewellery and watch retailer Titan Company had earlier approved the acquisition of the entire 91,90,327 equity shares held by the founder of CaratLane Trading Pvt Ltd and his family members representing 27.18% of the total paid-up equity share capital of CaratLane.

With this, Titan increased its shareholding in CaratLane to 98.28% from 71% for ₹4,621 crore.

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In 2016, Titan first acquired a 62% stake in the omni-channel jewelry retailer CaratLane for ₹357.24 crore. It then continued to increase its stake in the company.

Analysts believe by increasing its stake in CaratLane, Titan is capitalizing on its innovative online presence and deepening its presence in affordable luxury segment.

“Titan's latest move to significantly increase its stake in CaratLane, backed by the CCI's approval, is a strategic masterstroke, reflecting its commitment to dominate the burgeoning online jewelry market. By elevating its stake to a commanding 98.28%, Titan is not only deepening its foray into the affordable luxury segment but also capitalizing on CaratLane's innovative online presence,” said Sonam Chandwani, Managing Partner, KS Legal & Associates.

Chandwani believes this investment of ₹4,621 crore underscores Titan's vision to blend traditional jewelry expertise with modern e-commerce agility, potentially reshaping India's jewelry landscape towards a more digital-centric future.

Meanwhile, Titan Company reported a net profit of ₹940 crore in the second quarter of FY24, registering a growth of 9.7% from ₹857 crore in the corresponding quarter of last fiscal year.

Titan’s standalone revenue from operations in Q2FY24 increased 33.6% to ₹11,660 crore from ₹8,730 crore, YoY.

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Titan Company’s jewellery segment’s total income at ₹8,575 crore recorded an increase of 19% YoY. EBIT rises to ₹1,206 crore clocking an EBIT margin of 14.1% for Q2FY24 helped by better studded share in the portfolio.

Titan’s Watches & Wearables segment recorded a total Income of ₹1,092 crore during the quarter, up by 32% YoY, crossing ₹1,000+ crore of quarterly revenues for the first time in its journey.

On Wednesday, Titan shares ended 1.05% higher at ₹3,429.65 apiece on the BSE commanding a market cap of more than ₹3.04 lakh crore.

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