Buy Titan Company, target price Rs 2530: Emkay Global

Emkay Global has buy call on Titan Company with a target price of Rs 2530. The current market price of Titan Company is Rs 2126.85. Time period given by analyst is one year when Titan Company Ltd. price can reach defined target.

Titan Company Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 189160.60 Crore) operating in Gems and Jewellery sector.

Titan Company Ltd. key Products/Revenue Segments include Jewellery, Watches, Gold, Eyewear, Traded Goods, Precious & Semi Precious Stones, Other Operating Revenue, Other Services for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 7872.00 Crore, down -22.01 % from last quarter Total Income of Rs 10094.00 Crore and up 4.25 % from last year same quarter Total Income of Rs 7551.00 Crore. Company reported net profit after tax of Rs 527.00 Crore in latest quarter.

Investment Rationale
In line with revenue update, consolidated revenues are expected to see ~22% CAGR, led by 23% CAGR in standalone jewelry and 55% in Caratlane. Growth in watch/eyewear segments is expected to be slower at 2%/8%.

Operating leverage should lead to ~80bps EBITDA margin gain vs. pre-Covid. The studded mix should be back to preCovid levels of ~25% in Q1FY23.


Promoter/FII Holdings
Promoters held 52.9 per cent stake in the company as of 31-Mar-2022, while FIIs owned 18.4 per cent, DIIs 10.21 per cent.