Buy Titan Company: target of Rs 1710: Sharekhan
Sharekhan is bullish on Titan Company has recommended buy rating on the stock with a target price of Rs 1710 in its research report dated January 08, 2021.
January 14, 2021 / 09:03 PM IST
Sharekhan's research report on Titan Company
Jewellery sales grew by 15% in Q3,as festive demand uptick sustained during rest of the quarter. Watches and Eyewear businesses recovered to 88% and 92% in Q3 and are expected to fully recover by Q4. Better operating leverage would help margins to recover q-o-q and stand at ~11% in Q3; FY2022, OPM is expected to be 12.5-13%. Higher wedding demand, share gains from small players and improvement in discretionary spends would help jewellery business achieve good growth in FY22/23. Watches to see strong recovery as wearable and bands gaining strong traction.
We maintain a Buy on Titan Company (Titan) with a revised PT of Rs. 1,710; expected strong recovery in FY2022 and robust return profile make it a better play in retail space.
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