Buy Titan Company; target of Rs 3325: Motilal Oswal

Motilal Oswal is bullish on Titan Company recommended buy rating on the stock with a target price of Rs 3325 in its research report dated August 03, 2023.

Broker Research

August 06, 2023 / 12:13 IST

Buy

Motilal Oswal's research report on Titan Company

Titan Company (TTAN)’s 1QFY24 revenue grew 26% YoY, ahead of our expectation, with double-digit growth across all segments. However, due to lower-than-expected margins, EBITDA and adj. PAT missed our estimates. Margins were adversely affected by seasonality, volatility in gold prices and a one-time diamond price inventory gain in 1QFY23. Four-/Five-year Jewelry EBIT CAGR was robust at ~24%/22% in 1QFY24. Management indicated that Jewelry margin guidance of 12-13% in FY24 remains unchanged and 1Q is normally weak on margin front due to more gold contribution.

Outlook

TTAN’s brand-building initiatives across segments, increasing customer base, store expansions and development in international markets continued to be impressive. We reiterate our BUY rating with a TP of INR3,325 (premised on 60xFY25E EPS).

For all recommendations report, click here