10 August 2020 Titans (TTAN) 1QFY21 results were broadly in line with estimates. Gold volumes declined by 81% during the quarter. However, decent recovery was seen in Jun20 with Tanishqs like-to-like growth declining 18% YoY. The recovery prospects in the jewelry segment (over 80% of sales) appear brighter with good demand in Jul20 (101% of sales in Jul19, albeit aided by weak base and significant activation in Jul20) and first week of Aug20 as well. However, recovery in watches/eyewear is tracking slower than jewelry. Another impact of ineffective hedges on margins in 2QFY21 as well is expected. However, we believe there is a possibility that recovery in the jewelry business may take place in 3QFY21, instead of 4QFY21 as guided by management. However, given the volatile demand and COVID environment, we prefer to be conservative and are assuming recovery in 4QFY21. Maintain with a TP of INR1,300 with 17% upside.