Titan Company share price: Add Titan Company, target price Rs 2,520 : Kotak Institutional Equities

Kotak Institutional Equities has added a call to Titan Company with a target price of Rs 2525. The current market price of Titan Company is Rs 2312.85.

Titan Company, incorporated in 1984, is a large cap company (having a market capitalization of Rs 211874.61 Crore) operating in the gemstone and jewelry sector.

Major products/revenue segments of Titan Company include Jewelry, Watches, Gold, Eyewear, Traded Goods, Precious & Semi-Precious Stones, Other Operating Revenue and Other Services for the year ending March 31, 2021.

finance

For the quarter ended 31-12-2021, the company reported consolidated total revenue of Rs 10,094 crore, up 33.73% from last quarter; Total revenue of Rs 7,548 crore and up 31.79% from the same quarter last year. The company reported a net profit after tax of Rs 1012.00 Crore last quarter.

Investment rationale
Titan’s 4Q impression was disappointing given – (1) flat jewelry sales impacted by gold price volatility, (2) jewelry EBIT margin at ~11% (underlying, excluding gold price gains) (3) eyewear sales and margins were impacted by channel correction and one-time costs. Management has been adamant that they have set a very ambitious goal for fiscal year 2023 and are ready to achieve the same goal. The brokerage changed the estimates and maintained the fair value of Rs 2,525 and recommended ADD on the declines.

Promoter/Fii Holdings
The promoters held 52.9% of the company’s capital as of March 31, 2022, while the FIIs held 18.4% and the DIIs 10.21%.

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