Emkay Global Financial's research report on Titan Company
As per its Q2 business update, TTAN has exceeded our growth expectations across most business segments. Importantly, jewelry has reported a significant improvement with 26% growth in Q2 vs our 15% expectation and 9% growth in Q1. LTL growth has also inched upwards to the mid-teens vs 3% in Q1, likely triggered by a big 900bps duty cut. Revenue mix is likely a tad weaker with lowdouble-digits growth in the high-margin studded segment (vs ~25% overall growth).
Outlook
However, TTAN is comfortably placed to meet its ~12% jewelry EBIT margin guidance in FY25, in our view. Q2 outperformance should address investor concerns around potential moderation in growth for TTAN and drive a 4-5% increase in our earnings estimates. We recommend BUY with revised TP of Rs4,400/share (based on 65x Sep-26E EPS).
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