ICICI Direct's research report on Titan Company
Titan published its Q4FY21 business update wherein headline numbers were significantly ahead of consensus estimates. Key takeaways: a) increase in market share in southern region (Tamil Nadu), which has traditionally been a stronghold of regional jewellers, b) reported robust growth of ~70% in Q4FY21 (supported by favourable base and large B2B orders for gold coins), c) demand for wedding jewellery witnessed healthy offtake with overall share increasing in the pie, d) robust growth witnessed in both metro and non-metro cities, f) watches division reported flattish sales while eyewear division registered 20% revenue growth. Robust performance in challenging times reaffirms our thesis of long term market share gains for Titan.
Outlook
We broadly maintain our estimates for FY22-23E and build in revenue, earnings CAGR of 14%, 22%, respectively, in FY20-23E. We reiterate BUY rating on the stock and maintain target price of Rs 1830 (60x FY23E EPS).
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