Motilal Oswal's research report on Titan Company
Titan Company (TTAN)’s 4QFY23 revenue was ~19% ahead of our expectation; however, due to lower-than-expected margin, EBITDA and adj. PAT came in line with estimates. Margins were adversely affected by the impact from some actuarial calculations and one-time clean-up of old inventory in the eyewear business (majorly old lenses). Three/four year Jewelry sales CAGR was robust at ~33%/22% in 4QFY23. The management indicated that demand was adversely impacted in the later part of March and the first half of April; however, with the onset of the festive season (Akshay Tritiya) and promotional offers, demand momentum revived. The company had one of the best Akshay Tritiya sales this year.
Outlook
TTAN boasts of an outstanding track record that surpasses its peers, with superior short-term growth prospects, and exceptional long-term growth potential, all of which justify its high valuations. We reiterate our BUY rating with a TP of INR3,080 (premised on 55xFY25E EPS).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
