Accumulate Titan Company; target of Rs 867: Geojit
Geojit’s research report on Titan Company
Titan reported solid performance in Q2FY18 with a robust standalone revenue growth of 30% YoY driven by stellar performance of jewellery segment. Despite the impact of Prevention of Money Laundering Act (PMLA) and GST, Jewellery segment witnessed a stupendous growth of 36% YoY due to up-stocking on account of festive season. EBITDA grew impressively by 55% YoY with 200bps improvement in EBITDA margin to 12.4% in Q2FY18 owing to the benefit of operating leverage and better cost management.
We expect revenue & PAT to grow at a CAGR of 19.5% and 28.1% respectively over FY17-20E. Strong growth potential and market share gains owing to renewed focus on wedding & studded jewellery commands premium valuation. Upgrade to ‘ACCUMULATE’ with a revised TP of Rs. 867 based on 45xFY20E EPS.
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