Buy Titan Company; target of Rs 1798: Dolat Capital Market
Dolat Capital Market is bullish on Titan Company has recommended buy rating on the stock with a target price of Rs 1798 in its research report dated February 10, 2021.
February 16, 2021 / 05:22 PM IST
Dolat Capital Market's research report on Titan Company
Titan’s Q3FY21 revenue were in line but EBITDA and APAT exceed our estimate. Postponement of festive season to Q3 and strong wedding season resulted in increase in jewellery demand. Pent up demand due to postponement of weddings is expected to continue in Q4FY21E. Watches and Eyewear business reported strong recovery at EBIT level, was a positive surprise. Cost rationalization efforts helped the segmental EBIT to increase. In Jan’21, the company saw 28% retail growth in jewellery. Wedding jewellery grew by 10% in Q3FY21 and climbed 16% in Jan’21.
We have revised FY21/22/23E EPS estimates to Rs 10.3/25.4/30. We believe that the recovery in the Jewellery would continue hereon. Titan being niche player in the industry would attract higher valuations. We maintain Buy, with TP of Rs 1,798 (60x FY23E).
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