Titan Company share price shed 4 percent in the early trade on October 29 after the company posted its September quarter earnings.
It has reported standalone net profit of Rs 199 crore for Q2FY21 against a loss of Rs 270 crore quarter-on-quarter (QoQ) and a profit of Rs 320 crore year-on-year.
The company's standalone revenue came in at Rs 4,318 crore against Rs 1,862 crore QoQ and Rs 4,435 crore YoY.
The standalone EBITDA of the company came at Rs 294 crore against Rs 513 crore YoY. EBITDA margin stood at 6.8 percent against 11.6 percent YoY.
In the quarter ended September 2020, the big bull Rakesh Jhunjhunwala reduced stake in Titan Company after his wife, Rekha, sold 50,000 shares in the September quarter, according to a regulatory filing.
Also Read - Titan reports Q2 standalone profit at Rs 199 crore, meets expectations on revenue, profit front
Here are the brokerages views on the stock:
Credit Suisse has maintained neutral call on the stock and raised target to Rs 1,170 from Rs 1,070.
According to research house the recovery is likely to lag heightened expectations. It retain its neutral call & look for a better entry point, reported CNBC-TV18.
The company is emerging stronger from the crisis, while valuations already discount positives. Maintain FY21 earnings estimates but upgrade FY22 on higher margin expectations, said CLSA
The risk-reward is unfavourable with PE valuations at 61x FY22e. It has maintained sell rating and target raised to Rs 1,100 from Rs 931, reported CNBC-TV18.
Despite a relatively higher base for 3QFY21, outlook for the quarter remains positive due to (a) bunching up of postponed wedding demand, in addition to traditionally strong demand for wedding jewellery in 3Q, and (b) encouraging festive demand, which has already seen positive growth in the first 10 days of the festive season.
While FY22E multiples at 55x may appear expensive, it is primarily due to temporary impact of the pandemic in FY21, from which the rebound would be sharp over the next couple of years. Maintain Buy with target price of Rs 1,400 (55x Sep'22 EPS).
Titan posted good recovery in Q2FY2021 with 98% of the business recovering to pre-covid levels. Overall, Sharekhan expect Titan to benefit from people shifting to trusted brands and market share gains. This, along with a relatively stable balance sheet, makes it a better play in the retail space.
Sharekhan has by recommendation on the stock with a revised price target (PT) of Rs 1,350. The stock is currently trading at 50.7x and 42.9x its FY2022/FY2023E EPS (EV/EBIDTA of 32.4x/27.5xits FY2022/FY2023E).
At 09:23 hrs, Titan Company was quoting at Rs 1,172.40, down Rs 44.60, or 3.66 percent on the BSE.