Moneycontrol Bureau Goldman Sachs has retained buy rating on Titan with an unchanged target price of Rs 512 per share stating that the stock is at widest discount to its sector in last five years despite offering a superior growth profile. Shares of the watch and jewellery maker rose 2 percent intraday on Friday. The brokerage is confident that Titan will start reporting double-digit same-store-sales growth as Golden Harvest Scheme (GHS) contributions will be visible in second half of FY16. With a view that jewellery as a category will be key beneficiary of higher disposable income, Goldman Sachs thinks Titan will show top quartile sales growth of 25 percent through 2018 which is not being factored into the stock yet. Its April-June quarter was disappointing due to weak consumer sentiment. The company's Q1 net profit fell 14.8 percent to Rs 151.06 crore from Rs 177 crore in corresponding quarter last fiscal. Sales, during the quarter, declined 6.3 percent to Rs 2708.6 crore from Rs 2891.6 crore in year-ago period.Jewellery sales in Q1 slumped 10.9 percent to Rs 2072.03 crore from Rs 2325.27 crore year-on-year. he company says that its jewellery business continues to face regulatory pressures that have an adverse impact on sales. Absence of original Golden Harvest Scheme (which used to contribute 30 percent to jewellery revenues) hurt business.At 10:43 hrs Titan Company was quoting at Rs 346.20, up Rs 5.00, or 1.47 percent on the BSE. Posted by Nasrin Sultana Follow @NasrinzStory
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