Titan Company Ltd. share price target

Strong Quarter; Valuations Restrict Any Major Upside Titan Company has reported a strong performance in 4QFY17 with net sales and PBT growing by 43.4% YoY and 32.4% YoY to Rs34.3bn and Rs2.7bn, respectively. While Watches business posted 11% YoY growth in top-line, Jewellery sales grew by 55% YoY during the quarter. EBITDA margins for the quarter were lower by 80bps to 7.9%. Though we expect Titan to register impressive 16.4% and 19.2% CAGR in revenue and earnings, respectively through FY17-19E, valuations at 36x FY19E earnings seem to have incorporated the same leaving little room for any meaningful upside in the near-term. Notably, the stock has returned over 26% since our previous quarterly...

Results a mix bag Revenue significantly ahead of estimate up 43% yoy to Rs 34.2bn due to favorable base and activation. EBITDA margin was down 80bps yoy at 7.9%. APAT up 8.6% yoy to Rs 2bn, impacted by lower other income and higher tax rate. Studded share stood 34% for Q4FY17, flat yoy. Gross margin declined by 230bps mainly on account of higher promotional offers. Gold grammage grew 37% yoy and jewellery revenues grew 55% yoy to Rs 28.6bn. would drive demand for jewellery and watches segment. Early sign of the same are visible. While we upgrade our revenue estimate by 6%/8% for FY18E/FY19E, our earnings...

Revenue increased by 46.84% to Rs. 3871.34 Cr in Q3FY17 when compared to the previous quarter. Also, it increased by 13.92% when compared with Q3FY16.

Titan reported healthy Q3FY17 revenues despite demonetisation blues. Revenues grew 13.6% YoY to | 3892.1 crore (I-direct estimate: | 3514.3 crore) led by a robust performance in the jewellery segment, which rose 15.4% YoY to | 3255 crore. Watches & eyewear segments reported revenue growth of 5.1% and 12.4%, respectively Operating margins improved 60 bps YoY to 9.6% (I-direct estimate...

Q2FY17 sales remained flat YoY to | 2652 crore (I-direct estimate: | 2955 crore) due to flattish performance of the jewellery segment to | 1987 crore (Q2FY16: | 1983 crore) and 5.2% decline in the watches...

Back to Value Zone Validate Rating Upgrade Titan Company delivered decent performance in 2QFY17 despite reporting flattish revenue due to sharp fall in gold jewellery sales and weak exports of watches. Its Revenue, EBITDA & PAT stood at Rs26.4bn (down 0.7% yoy), Rs2.6bn (up 42%) & Rs1.8bn (up 23.5% yoy), respectively. EBITDA grew robustly owing to increased share of studded jewellery and higher gross margins on plain gold jewellery. We peg Titan's Revenue & Earnings to see 11.4% & 17.7% CAGR, respectively through FY16-18E. Titan's stock price has corrected by 13% since our last downgrade, while benchmark...

Topline was significantly below estimates as jewellery sales were impacted by a short wedding season and a sudden rise in gold prices; watches sales remained subdued EBITDA growth was higher than our/street estimates due to lower operating expenses Reported PAT was impacted by one-off expenses related to VRS; however, adjusted PAT growth was above our/consensus estimates Key highlights: Net sales rose 4% yoy to Rs 27.8bn vs. our/consensus growth estimates of 17%/15%. Gold prices rose 10% yoy. Jewellery grammage increased by 6% yoy and watches volumes grew 1% yoy. Studded share in jewellery fell sharply by 500bps yoy to 24% because...

Jewellery segment sales grew 3.2% YoY due to a depressed demand environment, shorter wedding season this year, clampdown on black money (which was earlier invested in jewellery) and absence of activation (unlike 1QFY16 when the company had advanced its sales season). With the sales season kicking in, management expects better demand. Segment margins increased 150bp YoY (adjusted for VRS) to 10.2%. Watches segment posted sales growth of 1.5% YoY to INR4.9b, mainly due to export sales decline as domestic sales rose 11% YoY. However, activation in this...

Titan Company's revenue grew by 3.6% to Rs27.8bn in 1QFY17. While revenue from Watches business recorded 1.4% yoy revenue growth, Jewellery sales rose by just 3.2% yoy to Rs21.4bn. EBITDA grew by 38.2% to Rs2.8bn, while net profit fell by 16.3% to Rs1.3bn mainly due to exceptional expense of Rs969mn relating to VRS for its employees. While we expect 14.7% and 17.3% CAGR in revenues and earnings, respectively through FY16-18E, we believe that concerns remain with respect to sustainable recovery in demand in both Jewellery & Watches businesses. As in our view high valuations of 37.9x FY18E earnings give little comfort on the stock...

Jewellery industry has started recovering; management maintained 15% FY17 guidance: While India's jewellery industry fell by 20-25% in Q4FY16, Titan grew 1%. The World Gold Council reported that gold imports to India fell by 39% yoy in Q4FY16, partly led by delayed...