Sharekhan's research report on Titan Company
Titan Company Limited (Titan) posted mixed performance in Q4FY2020 with consolidated revenue declining by 4.3% affected by the lockdown; however, high gross margin led to PAT declining by 2% to Rs. 342.8 crore (better than our as well as street expectation). Post the easing of the lockdown norms, 85% of Tanishq stores and 75% of World of Titan stores are operational. Jewellery and watches businesses are expected to come to normalcy by Q4FY2021. With strong traction to Gold Exchange Scheme, pent-up wedding demand, and gold being the safest asset class for investment, near-term growth prospects are intact for the jewellery business. Stable balance sheet and strong brand positioning would aid Titan to gain market share from smaller players.
Outlook
The stock has corrected by ~24% in the past four months. We maintain Buy with an unchanged PT of Rs. 1,130.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!