Emkay Global Financial has given Buy recommendation for Titan Company with a target price of Rs. 2900 in its research report issued on Feb 04, 2022

Emkay Global Financial’s report on Titan Company

Titan’s Q3 performance exceeded our expectations, with EBITDA/PAT growth of 63%/135% beating est. by 12-15%. Margins surprised positively, with the jewelry segment reporting an EBIT margin of 14.6% (up 320bps yoy), driving 68% growth in jewelry EBIT. Despite near-term restrictions, the commentary was optimistic. Management expects the wedding season to be strong in the next five months and plans are in-place to push wedding sales aggressively. It is positive about the reengineered product, light-weight jewelry, which can attract more consumers and become a competitive advantage. Network expansion should remain strong, and the company targets 30-40 store openings in jewelry. Eyewear is seeing significant acceleration, with the addition of 53 stores in Q3. The target is to reach 1,000 stores in FY23 vs. ~700 currently.

Outlook

We maintain our bullish stance with a revised TP of Rs2,900, valuing it at a lower multiple of 60x Mar-24E EPS (65x earlier), factoring in higher COE. Margin recovery in watches and further improvement in Caratlane’s profitability could drive more margin upside.

More Info on Trent

At 14:03 hrs Titan Company was quoting at Rs 2,497.55, up Rs 9.70, or 0.39 percent.

It has touched an intraday high of Rs 2,536.00 and an intraday low of Rs 2,488.00.

It was trading with volumes of 23,074 shares, compared to its thirty day average of 55,468 shares, a decrease of -58.40 percent.

In the previous trading session, the share closed down 0.29 percent or Rs 7.20 at Rs 2,487.85.

The share touched its 52-week high Rs 2,687.30 and 52-week low Rs 1,396.25 on 07 January, 2022 and 22 February, 2021, respectively.

Currently, it is trading 7.06 percent below its 52-week high and 78.88 percent above its 52-week low.

Market capitalisation stands at Rs 221,729.03 crore.

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