Buy Titan Company, target price Rs 3080: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on Titan Company with a target price of Rs 3080. The current market price of Titan Company is Rs 2499.7.

Titan Company, incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 221049.88 Crore) operating in Gems and Jewellery sector.

Titan Company key Products/Revenue Segments include Jewellery, Watches, Precious & Semi Precious Stones, Eyewear, Others, Other Operating Revenue, Scrap, Other Services for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 9224.00 Crore, down -2.77 % from last quarter Total Income of Rs 9487.00 Crore and up 22.20 % from last year same quarter Total Income of Rs 7548.00 Crore. Company has reported net profit after tax of Rs 835.00 Crore in latest quarter.

The company’s top management includes Mr.S Krishnan, Mr.Bhaskar Bhat, Mr.Sandeep Singhal, Ms.Sindhu Gangadharan, Dr.Mohanasankar Sivapraksam, Mr.Pradyumna Vyas, Mr.B Santhanam, Mr.Ashwani Puri, Mr.C K Venkataraman, Mr.N N Tata, Ms.Jayashree Muralidharan. Company has B S R & Co. LLP as its auditors. As on 30-09-2022, the company has a total of 89 Crore shares outstanding.

Investment Rationale
Earnings growth visibility for the stock remains strong. It has compounded earnings by~20% for an extended period of time. In the Jewelry industry, which is organizing at a rapid space, it is clearly at the vanguard in terms of growth among organized players. Its runway for growth is long, with a market share of ~6%. Unlike other high-growth categories, the competitive intensity from organized and unorganized peers in Jewelry is considerably weaker. The structural investment case for the company is intact. The brokerage maintains its BUY rating with a target price of Rs 3,080.

Promoter/FII Holdings
Promoters held 52.9 per cent stake in the company as of 30-Sep-2022, while FIIs owned 16.77 per cent, DIIs 11.53 per cent.