Buy Titan Company; target of Rs 3135: Motilal Oswal

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Motilal Oswal's research report on Titan Company

Stellar track record on all fronts: TTAN has been the standout performer among all of its Consumer peers, in terms of revenue, earnings, as well as stock price performance over the past five years. For a company of its size, sales of INR366b (USD4.6b) in FY23E and the ~20% revenue and earnings CAGR is extremely impressive. Impressive performance, despite the COVID-led restrictions and lockdowns: The company maintained its strong growth trajectory (three year Revenue/PAT CAGR at 20%/27%), even during the COVID-impacted period (FY20-FY22) – at a time when most Retail peers were struggling. This was especially commendable for a business that is predominantly a brick and mortar retailer. This was achieved, despite a near washout in 1QFY21 due to the first COVID wave and much lower than usual sales in 1QFY22 due to the second wave.

Outlook

The stock trades at expensive multiples, but its long runway for profitable growth warrants a premium valuation. We maintain our Buy rating on the stock with a TP of INR3,135 (65x Sep’24 EPS).

For all recommendations report, click here

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Titan Company - 261022 - moti