Titan's Q4FY20 revenue was in line, but operational performance was better than our estimates. The company was able to report ~16.5% growth in Jewellery business during January and February, however, lockdown in March resulted in revenue decline. Nevertheless, with efficient cost management, the company was able to post strong operational performance and margin expansion. Watches and Eyewear segments were impacted mainly due to lockdown, but margin expansion in watch division was encouraging.
OutlookWe have broadly revised our FY21E at Rs 19.8 and maintained our FY22E EPS estimates Rs 26.9. We Upgrade to Buy, with TP of Rs 1,293 (48x FY22E).
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