Buy

SENCO delivered consolidated revenue growth of 31% YoY to INR15.0b (in line) in 2QFY25. SSSG was at 20% (vs. 4% in 1QFY25, 19% in 2QFY24).

Kalyan Jewellers (KALYANKJ)’s consolidated revenue grew 37% YoY to INR60.7b (in line). The Indian business delivered 39% YoY revenue growth, driven by store additions.

TTAN reported a ~10% EBITDA miss, half of which was due to a ~100bps miss on jewelry margin, with the rest due to higher loss on customs duty cut (one-off). Topline trends for jewelry are impressive with 15%/21% LFL/UCP growth in Q2, and encouraging festive trends in Q3TD.

Titan Company’s (Titan’s) Q2FY2025 numbers were affected by lower margins in the jewellery business. Consolidated revenues grew by 16% y-o-y; adjusted PAT stood flat y-o-y.

Titan Company (TTAN) posted consolidated sales growth of 16% YoY in 2QFY25 (in line).

As per its Q2 business update, TTAN has exceeded our growth expectations across most business segments.

We see significant re-rating scope for Senco, helped by our expectations of a strong pick-up/SSG outperformance in Q2 and valuation discount vs P N Gadgil (PNG) after its ~70% listing gain.

Senco reported a big beat to our Q1 EBITDA/PAT estimates led by better gross margin (up by ~500bps YoY). The sudden spike in gold price and operating challenges led to a modest retail revenue growth of 11% in Q1.