Hold Titan, target price Rs 2870: BNP Paribas Securities

BNP Paribas Securities has hold call on Titan Company with a target price of Rs 2870. The current market price of Titan Company Ltd. is Rs 2617.1.

Titan Company, incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 232422.42 Crore) operating in Gems and Jewellery sector.

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
The company's jewellery segment reported revenue growth of 18% y-y for Q2FY23, with a three-year CAGR ofc27%, aided by an improved product mix. The brokerage is of the view that organised jewellery industry seems well positioned to gain market share from unorganised players as companies shift focus to low ticket-size customers, region-specific product offerings, an improved digital presence and deepening penetration. Also, the industry is seen to benefit as hallmarking regulations are fully implemented.

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.