Titan: Shining performance in December quarter
We believe Titan is the best consumer discretionary play, given its parentage, brand, market position and balance sheet strength
January 07, 2021 / 09:23 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Titan’s (CMP: Rs 1,574, Market capitalisation: Rs 1,39,765 crore) business update for the December 2020 quarter has come above Street expectations. The third quarter (Q3) is an inflection point with the company likely to deliver double-digit growth (we expect ~14 per cent year-on-year growth) after a gap of three quarters, indicating a strong recovery from COVID-19. Improved consumer sentiment and higher gold prices led to a strong double-digit growth in the key jewellery segment in the festive period (October...