Motilal Oswal has given Buy recommendation for Titan Company recommended buy rating on the stock with a target price of Rs 2900 in its researc with a target price of Rs. 2900 in its research report issued on May 14, 2022
Motilal Oswal’s research report on Titan Company
The management is targeting 2.5x of FY22 sales (INR232.7b) by FY27, i.e. ~20% CAGR. It targets having over 600 Tanishq stores in 300 towns over the next three years (389 stores in Mar’22). This is in line with a similar five-year target it had set in FY18 and is on course to achieve. With ~88% share of consolidated revenue in FY22, jewelry is the key business driving TTAN’s revenue and earnings growth prospects over the medium term. The management’s focus on operating leverage-led margin expansion is encouraging and more sustainable in the Jewelry segment, where TTAN has a long runway for growth with ~6% market share.
Expensive valuations in the near term will get burnt off by a rapid pace of growth. We maintain our Buy rating.