Titan Company shares rise 2% as company seeks to buy wearables maker Noise

Shares of Titan Company rose nearly 2% today after a report said the company was in talks to buy a majority stake in local wearables maker Noise.

The gemstone and jewelry maker plans to boost its presence in the booming wearables market with the deal. Shares of Titan Company gained after four consecutive days of decline. The large-cap share climbed 1.91% to Rs 2,415 in early trade.

The stock is trading above the 200-day moving averages, but below the 5-day, 20-day, 50-day and 100-day moving averages. The stock has gained 63% in one year but has lost 5.42% since the start of this year.

A total of 0.16 lakh of the company’s shares changed hands, representing a turnover of Rs 3.78 crore on BSE. The market capitalization of the luxury goods company stood at Rs 2.12 lakh crore.

Stocks in the news: TCS, Dish TV, Adani Ports, Titan Company, etc.

The large-cap stock hit a 52-week high of Rs 2687 on 7th January 2022 and a 52-week low of Rs 1400.65 on 4th May 2021.

Noise is owned by Gurugram-based Nexxbase Marketing Pvt. ltd.

The transaction is likely to value Noise at around Rs 700 crore-Rs 800 crore, the report said in a business daily. The company’s valuation is double the consumer electronics maker’s revenue of Rs 400 crore, similar to businesses in the clothing category.

The wearables category has garnered huge interest from young people due to affordable prices, capabilities such as fitness tracking and access to phone notifications.

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Smartwatch shipments more than tripled in 2Q21, zooming 206% year-on-year and 18% quarter-on-quarter, led by local brand Noise, according to data from Counterpoint’s IoT service.

Noise, with a 27.3% market share, grew 29% year-over-year in 2021.

Meanwhile, ICICI Direct has assigned a buy call to Titan Company with a target price of Rs 2,860. The timeframe given by the analyst is 3 months to achieve the mentioned target.

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