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

Sharekhan’s research report on Titan Company

Titan Company Limited’s (consolidated) revenue grew by 32% to Rs. 10,037 crore, driven by higher festive demand for the jewellery business and strong recovery in the watches and eyewear business. Better operating leverage and product mix resulted in 324 bps y-o-y improvement in OPM to 14.4%. Jewellery business revenue grew by 37% y-o-y (excluding bullion sales), led by festive purchases in October and November. Business grew by 29% over a two-year CAGR basis. Watches and eyewear business registered 29% and 26% growth, respectively. Emergence of the third COVID wave slowed down the momentum in January. However, management is confident that momentum will improve with strong wedding season over the next four-five months. Jewellery business margins are likely to settle at 12-13% in the medium term.

Outlook

Strong earnings visibility and higher cash flows make Titan one of the better plays in the discretionary space. We maintain Buy with an unchanged PT of Rs. 2,900.

 

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