Titan Company Ltd, incorporated in the year 1984, is a Large Cap company with a market cap of Rs 133167.92 Crore, operating in Gems and Jewellery sector.
Titan’s key Products/Revenue Segments include Jewellery, Watches, Eyewear, Others, Precious & Semi Precious Stones, Gold, Other Operating Revenue, Other Services, Scrap for the year ending 31-Mar-2020.
Investment Rationale
Given the ongoing lockdown/restrictions across India, Motilal Oswal has cut its FY22E EPS estimate by 12.2 per cent. However, there is no material change to its FY23E EPS. Motilal said, Titan’s medium- to long-term earnings growth opportunity is best-of-breed, which is reflected in the EPS CAGR of ~24 per cent over the past three years before the Covid-19 impact in FY21. It added, there is a strong growth runway given Titan’s market share of less than 10 per cent and the continuing struggles of unorganized and other organized peers.
According to Motilal Oswal, while valuations of 50.6x FY23E EPS are not cheap, the long runway for profitable growth deserves a premium multiple. It maintains its buy rating with a target price of Rs 1,785 per share (60x FY23E EPS).
Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 7551 Crore, down 1.41 per cent from last quarter’s Total Income of Rs 7659 Crore and up 58.86 per cent from last year same quarter’s Total Income of Rs 4753.21 Crore. Company has reported a net profit after tax of Rs 568 Crore in latest quarter.
