Hold Titan, target price Rs 3,400: ICICI Securities

ICICI Securities has a hold call on Titan Company, with a target price of Rs 3,400. The current market price of Titan Company is Rs 3424.35. Titan, incorporated in 1984, is a Large Cap company with a market cap of Rs 303818.18 crore, operating in the Gems and Jewellery sector.

Titan Company's key products/revenue segments include Jewellery, Other Operating Revenue, Watches, Eyewear, Others, Other Services for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 14656.00 crore, up 9.49% from last quarter Total Income of Rs 13386.00 crore and up 15.83% from last year same quarter Total Income of Rs 12653.00 crore. The company has reported net profit after tax of Rs 703.00 Crore in latest quarter.

The company's top management includes Mr.Arun Roy, Mr.Ashwani Puri, Mr.Anil Chaudhry, Mr.Sandeep Singhal, Ms.Sindhu Gangadharan, Dr.Mohanasankar Sivapraksam, Mr.Sandeep Nanduri, Mr.Bhaskar Bhat, Ms.Mariam Pallavi Baldev, Mr.C K Venkataraman, Mr.N N Tata, Mr.B Santhanam. Company has B S R & Co. LLP as its auditors. As on 30-09-2024, the company has a total of 89 Crore shares outstanding.


Investment Rationale
ICICI Securities has increase Titan earnings estimates by ~4/~3% for FY25-26E, modelling revenue / EBITDA / PAT CAGR of 19 / 18 / 14 (%) over FY24-26E. They maintain a HOLD call with a revised DCF-based target price of Rs 3,400 (vs Rs 3,100 previously). Key risks are: Irrational competitive environment and sustained weakness or worsening of macro environment leading to demand slowdown.

Promoter/FII Holdings
Promoters held 52.9 per cent stake in the company as of 30-Sep-2024, while FIIs owned 18.23 per cent, DIIs 11.22 per cent.