Why did the stock of Titan drop so sharply on 07 July?

Titan dipped 3% on 07 July after the quarterly guidance given by the company showed low levels of traction and a weak recovery. Despite these concerns, Titan has recorded a 117% growth in revenues in the Jun-21 quarter. However, Titan has also admitted that due to the pressures created by COVID 2.0, the sales from stores that had been kept open during the pandemic 2.0 were relatively muted.

The good news for Titan was that the watches and eye wear segments saw sharp recovery in walk-in customers once stores were reopened towards the latter part of May this year. The problem arose with the tepid forecast of pent-up demand for its products in the Jun-21 quarter. In fact, Titan expects the pent-up demand of Q1 to have got back-ended by two or three quarters due to COVID 2.0. That is what really hit the stock price of Titan.