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Last Updated : May 09, 2019 11:09 AM IST | Source: Moneycontrol.com

Global Brokerages raise target price on Titan post Q4 show

Global brokerage firms maintained their rating but raised their respective target price to Rs 1294 which translates into an upside of nearly 19 percent from Wednesday’s closing price.

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Rakesh Jhunjhunwala reduced stake in Titan Company for the second consecutive quarter in Q4 to 7.04 percent. Global brokerage firms, on the other hand, remained positive on the stock post post March quarter results and raised their target price.

The big bull reduced stake from 7.08 percent in the December quarter to 7.04 percent at the end of March quarter. It was 8.45 percent in the year-ago period i.e. March 2018.

Tata Group firm Titan Company posted a 14.41 percent increase in consolidated net profit at Rs 348.30 crore for the fourth quarter of 2018-19. The company had reported a net profit of Rs 304.41 crore for the corresponding period of the 2017-18 financial year.

Total income increased to Rs 4,945.06 crore for the quarter under review as compared to Rs 4,125.69 crore in the same period of 2017-18, Titan Company said in a regulatory filing.

The company's board recommended a dividend of Rs 5 per share of Re 1 each.

Read full results here: Titan Q4 net up 14% at Rs 348 crore

Reacting to the results, global brokerage firms maintained their rating but raised their respective target price to Rs 1,294 which translates into an upside of nearly 19 percent from Wednesday’s closing price.

Macquarie: Outperform| Target raised to Rs 1,294 from Rs 1,186

Macquarie maintained its outperform rating on Macquarie post March quarter results but raised its target price to Rs 1294 from Rs 1186 earlier.

The company continues to gain market share in the jewellery business. The adjusted EBITDA was in-line with estimates. The EBITDA was impacted by several one-offs including provision for IL&FS inter corporate deposits (ICDs).

Titan is the top pick in consumer discretionary space & a marquee idea, according to Macquarie. Store additions should play a big part in gaining market share, said the report.

CLSA: Outperform| Raise target to Rs 1,225 from Rs 1,100 earlier.

CLSA maintained its outperform rating on Titan Company post March quarter results but raised its target price to Rs 1225 from Rs 1100 earlier.

The Jewellery division delivered revenue growth of over 20 percent on a YoY basis. The underlying volume growth is 15 percent for the jewellery business.

The reported numbers were marred by exceptions and one-offs. The outlook is positive for FY20, and CLSA lifts EPS estimates by 1-3 percent.

Credit Suisse: Outperform| Raise target to Rs 1,250 from Ra 1,175

Credit Suisse maintained its outperform rating on Titan Company post March quarter results and raised its target price to Rs 1250 from Ra 1175 earlier.

The Q4 adjusted PBT rose 26 percent on a YoY basis and was largely in-line with estimates. However, few one-offs depressed the reported PAT.

Jewellery led with 21%/13% Revenue/EBIT growth, and market share gains. The brokerage firm raised earnings estimates by 2 percent.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
First Published on May 9, 2019 11:07 am
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