Motilal Oswal has given Buy recommendation for Titan Company with a target price of Rs. 2900 in its research report issued on May 03, 2022

Motilal Oswal’s research report on Titan Company

TTAN’s 4QFY22 result was above our expectations, led by healthy sales growth in the non-jewelry segments. The management stated that growth in jewelry sales was strong in Apr’22, in line with its yearly targets. Its margin outlook is improving, with a higher proportion of studded jewelry (up 400bp YoY in 4QFY22), gradually moving towards pre-COVID levels. The opportunity for growth is immense in the jewelry industry, with Tanishq’s current market share below 10%. We maintain our Buy rating.

Outlook

The stock’s near-term multiples appear expensive, but its long runway for profitable growth warrants premium multiples. We maintain our Buy rating, with a TP of INR2,900 per share (75x FY24E EPS).

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