Motilal Oswal is bullish on Titan Company has recommended buy rating on the stock with a target price of Rs 1125 in its research report dated May 14, 2018.
Motilal Oswal's research report on Titan Company
Management remained confident about the Jewelry segment growth prospects and reiterated its recently revised growth guidance (expects 2.5x growth – 20% CAGR – in the segment over FY18-23, as against the previous guidance of 2.5x growth over FY17-22). The company confirmed the 25% Jewelry segment growth target for FY19, exhibiting confidence about growing rapidly despite the previous year’s strong performance (+25% in FY18). Jewelry growth is likely to be muted this quarter because of an extremely high base (50%+ growth in 1QFY18), but the rest of the year is likely to be good enough to compensate for that. Management also cited that the competitive advantage versus peers is getting bigger over the past few quarters,
Outlook
Maintain Buy with a target price of INR1,125, based on 55x March 2020E EPS (30% premium to three-year average P/E).
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