Titan Company Ltd., incorporated in the year 1984, is a Large Cap company (having a market cap of Rs 221382.80 Crore) operating in Gems and Jewellery sector.
Titan Company Ltd. key Products/Revenue Segments include Jewellery, Watches, Gold, Eyewear, Traded Goods, Precious & Semi Precious Stones, Other Operating Revenue, Other Services for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 7548.00 Crore, up 114.49 % from last quarter Total Income of Rs 3519.00 Crore and up 64.05 % from last year same quarter Total Income of Rs 4601.00 Crore. Company reported net profit after tax of Rs 641.00 Crore in latest quarter.
Investment RationaleTitan’s Q2FY22 consolidated revenue grew 65% YoY to INR74.9bn (HSIE: INR74.5bn). Jewelry (ex-bullion) grew 77% (2-yr CAGR for Q2/H1FY22: 34/11%). Adj. GM is estimated to have improved to 25% (up ~440bps YoY; HSIE: 26%), courtesy (1) improving studded ratio; (2) normalising gold coin sales in jewelry; and (3) a better product mix in non-jewelry segments. Better- than-expected cost controls aided EBITDAM (12.9% vs HSIE: 11.2%). Non- jewelry virtually restored pre-pandemic sales levels in Q2 and surprised on profitability too. It increases FY23/24 EPS estimates by 4-5% to account for lower cost of retailing. Our DCF-based target price stands revised to INR 1,700/sh (earlier INR1,600/sh), implying 50x Dec-23 P/E.
Promoter/FII Holdings
Promoters held 52.9 per cent stake in the company as of 30-Sep-2021, while FIIs owned 19.06 per cent, DIIs 10.1 per cent.
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