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Last Updated : Jul 12, 2019 11:12 AM IST | Source: Moneycontrol.com

Buy Titan Company; target of Rs 1250: ICICI Direct

ICICI Direct is bullish on Titan Company has recommended buy rating on the stock with a target price of Rs 1250 in its research report dated July 11, 2019.

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ICICI Direct's research report on Titan Company


In its quarterly preview of Q1FY20, the management highlighted that the performance in its jewellery division was below par, with the division reporting subdued revenue growth of ~13% YoY (vs. our estimate of 16%). A challenging consumption scenario along with a sharp spike in gold prices weighed on the performance. Despite headwinds, Tanishq continues to gain market share, signalling sustained weakness faced by other jewellery players. The watches division reported healthy revenue growth of 19% mainly on the back of execution of large institutional order from TCS. Titan has consistently displayed its ability to gain market share amid a tough industry scenario. With the long term story intact, we believe the recent stock price correction offers a good entry point.


Outlook


Titan’s strong brand equity enables it to outperform industry peers and deliver consistent earnings growth amid a challenging industry scenario. We model revenue, earnings CAGR of 18.4%, 26.7%, respectively, in FY18-21E. We reiterate our BUY rating on the stock with a revised target price of Rs 1250 (49.0x FY21E EPS).


For all recommendations report, click here


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First Published on Jul 12, 2019 11:12 am
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