Sharekhan is bullish on Titan Company has recommended buy rating on the stock with a target price of Rs 1130 in its research report dated June 09, 2020.
Sharekhan's research report on Titan Company
Titan Company Limited (Titan) posted mixed performance in Q4FY2020 with consolidated revenue declining by 4.3% affected by the lockdown; however, high gross margin led to PAT declining by 2% to Rs. 342.8 crore (better than our as well as street expectation). Post the easing of the lockdown norms, 85% of Tanishq stores and 75% of World of Titan stores are operational. Jewellery and watches businesses are expected to come to normalcy by Q4FY2021. With strong traction to Gold Exchange Scheme, pent-up wedding demand, and gold being the safest asset class for investment, near-term growth prospects are intact for the jewellery business. Stable balance sheet and strong brand positioning would aid Titan to gain market share from smaller players.
Outlook
The stock has corrected by ~24% in the past four months. We maintain Buy with an unchanged PT of Rs. 1,130.
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