Emkay's research report on Titan Company
Results in line with estimates Revenue Rs 29.2bn, up 9.2% yoy, EBITDA Rs 2.8bn, up 12.5% yoy and APAT grew 15.2% yoy to Rs 1.9bn
Jewellery volume growth of 25% yoy led by Gold Plus and revival in coin sales. However, SSG across most formats were negative impacted by muted demand environment
Gross margins lower due to unfavourable mix, but prudent expense management drives EBITDA margin expansion of 30bps yoy to 9.4%. Hedging gains coupled with better mix and operating leverage to drive margin expansion in ensuing quarters
"Upped earnings by 3/2% in FY16-17E owing to tax benefits accruing from Pantnagar facility. With most regulatory headwinds addressed and given healthy revenue and earnings growth drivers, we retain BUY with revised price target of Rs 470/share", says Emkay Global Financial Services research report.
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