Titan Q4 Review - Long Term Intact: Prabhudas Lilladher

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Prabhudas Lilladher Report

Titan Co. reported numbers in-line with our estimates although it disappointed on margin front due to loss on account of customs duty (our estimate Rs 600-650 million), market share focus and deterioration in sales mix.

Near term outlook looks hazy with second Covid-19 wave leading to 50% store closures, postponement of weddings and deferment of discretionary expenses.

However, we remain optimistic about jewellery division growth on back of:

1. Market share gains from regional and small players,

2. Focused regional marketing campaign leading to market penetration,

3. Increase in studded jewellery contribution from 30% in Q4 to normal 34-36% levels,

4. Increase in online and omnichannel sales led by expansion of Caratlane.

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