Buy Titan Company; target of Rs 3350: Sharekhan

Sharekhan is bullish on Titan Company has recommended buy rating on the stock with a target price of Rs 3350 in its research report dated August 02, 2023.

Broker Research

August 06, 2023 / 11:10 IST

Buy

Sharekhan's research report on Titan Company

Titan Company’s (Titan’s) Q1FY2024 performance was affected by higher-than-expected dip in the EBIDTA margin, resulting in a 4% y-o-y decline in PAT, while topline growth came in-line at ~21% y-o-y. Demand environment of the jewellery business remained good in July (in-line with June 2023). The company expects good demand in the festive and wedding season in the quarters ahead. Business margins are likely to be at 12-13% (despite the decline in Q1) in FY24. Titan targets a 1% market share gain in the domestic jewellery business every year, with a large focus on regional share gains through various initiatives. The company is focusing on the international jewellery business, which is expected to be one of the key drivers in the long run.

Outlook

With strong levers in place, revenue and PAT are expected to report 18% and 20% CAGR over FY2023-FY2025E. The stock trades at 71x and 56x its FY2024E and FY2025E EPS, respectively. We maintain our Buy rating with a revised PT of Rs. 3,350.

For all recommendations report, click here