Buy Titan Company; target of Rs 1301: Dolat Capital

Dolat Capital's research report on Titan Company

Titan’s Q1FY21 revenue was in line, but operational performance was lower than our estimates. In July, retail jewellery segment posted 1% increase with advancement of activations. However, Watches and Eyewear segments yet to witness significant improvement. Other expenses remained high due to increase in ineffective hedges. Going ahead, ineffective hedges are likely to reduce substantially with normalization of demand scenario.

Outlook

We have revised our FY21E EPS at Rs 12.3 (-37.6%) and maintained our FY22E EPS estimates Rs 27.1. We maintain Buy, with TP of Rs 1,301 (48x FY22E).