ICICI Direct is bullish on Titan Company has recommended buy rating on the stock with a target price of Rs 1090 in its research report dated April 19, 2018.
ICICI Direct's research report on Titan Company
The management, in its latest BSE filings, has said that the company has undergone a vision exercise to rejig its revenues for FY23E. The management had earlier guided to grow its jewellery revenues at a compounding rate of 20% till FY22 (2.5x revenues of FY17). The same growth phase has now been extended to FY23. Given the robust performance in 9MFY18 (24% and 32% revenue and EBITDA growth, respectively), the management remains upbeat on the growth outlook with the aim to be a | 50000 crore company by FY23E (revenues in terms of MRP).
Outlook
We believe Titan’s growth story will remain multi-pronged and drawn over a longer time frame. Consequently, we shift to a DCF based valuation to arrive at a target price of | 1090 with a BUY recommendation on the stock. On a DCF basis, we assume revenue CAGR of 20% over FY17-23E and 11% over FY24E-30E with 10.8% WACC and 4% terminal growth rate.For all recommendations report, click here
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