Should you Buy Titan Stocks? Titan Company shares had been buying and selling larger on Thursday, a day after the corporate posted a 50 per cent year-on-year bounce in standalone internet revenue at Rs 734 crore within the March quarter of the monetary 12 months 2022-23. Total income got here in at Rs 8,753 crore, rising 25 per cent.
Revenue from operations surged 33% on-year to Rs 9,704 crore for the quarter underneath evaluation. The identical stood at Rs 7,276 crore within the 12 months in the past interval. The firm’s EBIT (earnings earlier than curiosity and taxes) rose 37% to 1,053 crore, whereas EBIT margins stood at 12%.
Titan shares had been buying and selling marginally larger at Rs 2685 in Thursday’s commerce on BSE.
The jewelry section grew by 24 per cent to Rs 7,576 crore within the March quarter. The Indian enterprise grew by 21 per cent in the identical time. The marriage ceremony section noticed a comeback with progress charges marginally larger than the general retail gross sales progress mentioned Titan.
The watches and wearables section recorded a complete revenue of Rs 871 crore, up by 40 per cent, backed by robust progress within the analog watches section and a multi-fold improve in wearables.
The enterprise hit a milestone of Rs 5000 crore-plus of annual uniform shopper value (UCSP) retail gross sales and complete gross sales of 1 million-plus smartwatches.
“The 12 months passed by witnessed a number of firsts for Titan. The jewelry, watches and wearables, and eyecare achieved landmark milestones of annual shopper retail gross sales. After a satisfying efficiency throughout all of the segments throughout FY23, we’re effectively ready and looking out ahead to an thrilling FY24,” said C K Venkataraman, MD, Titan.
Here’s what investors should do
Jefferies has tweaked its FY2023-25 earnings by 1-2%. It retains ‘Hold’ with a revised price target of Rs 2,550 from an earlier target of Rs 2,700.
The management has reiterated its medium-term growth trajectory of 20 percent, and franchisee margin changes are expected to improve the business mix. Additionally, the company has received encouraging responses from its international business and plans to scale up rapidly in FY24.
Despite a soft March due to high gold prices, Titan’s jewellery growth remains robust, and the company’s other businesses are scaling up quickly, CLSA said. “Comprehensive growth across segments and outlook is optimistic,” it added. CLSA has rated Titan a “purchase” with a target of Rs 3,210.
Motilal Oswal maintained a Buy rating on Titan with a price target of Rs 3,080. Titan boasts of an outstanding track record that surpasses its peers, with superior short-term growth prospects, and exceptional long-term growth potential, all of which justify its high valuations, it said. The target price is premised on 55xFY25E EPS.
Amnish Aggarwal, Head of Research, Prabhudas Lilladher maintained a Buy on Titan for a price target of Rs 2,956. He highlighted strong revenue print amid disappointment in margins. The analyst said that strong momentum continues across all key business segments aided by strong network expansion and strong consumer confidence. The stock trades at 49.6X FY25 EPS.
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