Sharekhan: Buy Titan Company; target of Rs 2950

Sharekhan is bullish on Titan Company has recommended buy rating on the stock with a target price of Rs 2950 in its research report dated May 03, 2023.

Titan Company (Titan’s) Q4FY2023 performance was broadly in line with expectation with consolidated revenues (excluding bullion sales) growing by 27% y-o-y and PAT growing by 30% y-o-y (EBIDTA margins stood at 10.5% lagging our as well as street’s expectations). Jewellery demand picked in the second half of April (after soft March and early April) and remained good in May due to wedding season. With good traction during in the festive/wedding season, the management expects double-digit growth to sustain in FY2024. Jewellery business’ margins to sustain at 12-13% while eyewear business margins to be at mid-teens, scale up in the emerging business to add to revenues and profitability. The stock trades at 60.3x/49.7x its FY2024E/25E EPS.