Angel Broking neutral on Titan Industries

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Angel Broking neutral on Titan Industries

Angel Broking has maintained neutral rating on Titan Industries, in its May 4, 2011 research report.

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Angel Broking has maintained neutral rating on Titan Industries , in its May 4, 2011 research report.

"Titan Industries (Titan) reported stellar performance for 4QFY2011, which was ahead of our expectations. The company reported top-line growth of 35.6% yoy to Rs 1,778 crore, backed by robust revenue performance by the jewellery and watches segments, which grew by 39% yoy and 17% yoy, respectively. However, EBITDA was lower on account of one-time employee benefit provision. At the same time, PAT grew by 63.7% yoy on account of lower depreciation."

"Healthy growth in the jewellery and watches segments improves performance: During the quarter, Titan's jewellery segment witnessed stellar growth of 39% yoy in revenue to Rs 1,373 crore (Rs 985 crore) on the back of higher gold prices, higher offtake of studded jewellery and overall strong volume growth (~20%). The jewellery segment also witnessed a ~210bp yoy improvement in PBIT margin to 8.7%. Revenue of the company's other businesses (eyeware and precision engineering) grew by 161% yoy and managed to curtail loss by 24% to Rs 10 crore on PBIT level as compared to loss of Rs 13 crore in 4QFY2010. Although we remain positive on Titan's growth prospects, we believe at 26.9x FY2013E earnings, it discounts the same fairly well. Hence, we maintain our Neutral rating on the stock," says Angel Broking research report.

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To read the full report click on the attachment