Buy Titan Company; target of Rs 3240: ICICI Direct

ICICI Direct's research report on Titan Company

Titan has transformed itself from a watch maker to an enviable lifestyle company, with jewellery being the leading vertical (85% of revenues). Robust distribution network comprises 2300+ stores spread across 2.9+ mn sq ft. Titan has consistently displayed its ability to gain market share amid a tough industry scenario owing to its robust balance sheet (30%+ RoCE and cash & investments worth Rs 1600+ crore) and strong brand patronage.

Outlook

We continue to remain structurally positive on the stock as high growth visibility justifies premium valuations. We maintain BUY rating on the stock. Introducing FY25E, we roll over our valuations and now value Titan at Rs 3240 i.e. 66x P/E on average of FY24-25E EPS (earlier TP Rs 3080).

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