Sharekhan has given Buy recommendation for Titan Company with a target price of Rs. 2900 in its research report issued on May 13, 2022
Sharekhan’s research report on Titan Company
Titan’s annual analyst conference outlined the company’s ambitious growth outlook for the next five years with an aim to achieve strong double-digit growth driven by strengthening core businesses and scale-up in the new ventures with efficient capital allocation. Management aims at growing jewellery business by 2.5x by FY27, watches to reach Rs. 10,000 crore business by FY26, scale-up in eyecare business while some of new ventures such as ethnic wear, bags and international business to cross Rs. 1,000 crore of revenues by FY27. Jewellery business’ margins will remain stable while a stark improvement is anticipated in margins of watches and eyecare businesses, which will consistently boost EBITDA margins. Scale-up in new ventures will also add-on to profitability.
We retain a Buy rating on Titan with an unchanged price target of Rs. 2,900. The stock trades at 64.3x/50.3x its FY2023/24E earnings. It remains among our top picks in the consumer discretionary space.