Sharekhan is bullish on Titan Company has recommended buy rating on the stock with a target price of Rs 1445 in its research report dated November 05, 2019.
Sharekhan's research report on Titan Company
Titan Company’s (Titan) Q2FY2020 performance was impacted by a sharp increase in gold prices, resulting in subdued demand for the jewellery segment; Consolidated revenue grew by just 2.0% and adjusted PAT declined by 2.7% y-o-y during the quarter. Revenue of the jewellery business declined by ~2%; revenue of the watches business grew by 6% and eyewear revenue witnessed ~28% growth during the quarter. Management has cut its guidance of 12-13% growth in the jewellery business in H2FY2020 (earlier 20%); better demand from the marriage segment (22% of jewellery business) would help double-digit growth.
Outlook
Reduced estimates for FY2020/FY2021 by ~6% each to factor in lower growth in the jewellery business; maintain Buy with an unchanged PT of Rs. 1,445 (valuing at 35x its FY2022E EV/EBIDTA).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
Read More
