Prabhudas Lilladher has given Buy recommendation for Titan Company with a target price of Rs. 2915 in its research report issued on Jan 06, 2022

Prabhudas Lilladher’s research report on Titan Company

We are increasing FY22/23/24 EPS estimates by 10%, 5.8% and 6.5% to Rs25.6/33.4/42.2 and increase DCF based target price to Rs2915 (Rs2651 earlier). This follows stronger than expected 3Q jewellery sales growth even as watch and Eyewear sales are slightly lower than our expectations. we believe 37% jewellery sales growth (~45% volume growth) shows the benefit of low gold prices, busy marriage season, hallmarking, higher walk ins and 15% increase in ticket size than pre covid levels. Watch sales bounced back led by Titan brand in Tier2/3 cities while Eyewear business growth was led by sunglasses and frames. We note that Tanishq sales are far better than our channel checks which suggested industry growth of ~20%, suggesting market share gains.

Outlook

We estimate 50.7%/28.3% PAT CAGR over FY21-24/FY22-24 and arrive at a DCF based target price of Rs2915 (Rs2651 earlier). We believe structural story remains intact led by market share gains, strong balance sheet, franchisee based model and Omni Channel across product segments. Reiterate Buy.

More Info on Trent

At 13:20 hrs Titan Company was quoting at Rs 2,577.25, down Rs 19.50, or 0.75 percent.

It has touched an intraday high of Rs 2,687.30 and an intraday low of Rs 2,565.55.

It was trading with volumes of 143,510 shares, compared to its thirty day average of 38,533 shares, an increase of 272.43 percent.

In the previous trading session, the share closed up 0.79 percent or Rs 20.35 at Rs 2,596.75.

The share touched its 52-week high Rs 2,678.10 and 52-week low Rs 1,396.25 on 18 October, 2021 and 22 February, 2021, respectively.

Currently, it is trading 3.77 percent below its 52-week high and 84.58 percent above its 52-week low.

Market capitalisation stands at Rs 228,804.69 crore.

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