Buy Titan Company; target of Rs 1260: Sharekhan
Sharekhan is bullish on Titan Company has recommended buy rating on the stock with a target price of Rs 1260 in its research report dated August 06, 2019.
August 08, 2019 / 03:38 PM IST
Sharekhan's research report on Titan Company
In Q1FY2020 Titan Company’s (consolidated) revenue grew by 15.6% y-o-y to Rs. 5,095.1 crore; driven by ~20% growth in the watches business and ~13% growth in the jewellery business. OPM on a comparable basis declined by 70 BPS to 10.1% (reported OPM improved by 30 BPS) largely on account of lower margins in the watches business and sustained losses in the eyewear business. We have slightly reduced our estimates to factor in lower than expected profitability in Q1FY2020 and sustained pressure on jewellery margins due to spike in gold prices.
Titan posted relatively better performance in a tough environment; we maintain our Buy recommendation with a revised PT of Rs. 1,260.
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