'Reduce' Titan Company's Shares, Maintains HDFC Securities — Here's Why
While Damas has faced financial headwinds historically, the acquisition deal provides Titan a unique opportunity to gain immediate scale advantage and access to a premium, well-established brand.
Acquiring a century-old company like Damas, with one of the largest retail footprints in the GCC spanning 146 stores, at ~0.9x EV/Sales (CY24) (excluding Graff Sales), reflects a disciplined and fair valuation.
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HDFC Securities Institutional Equities
Acquiring a century-old company like Damas, with one of the largest retail footprints in the GCC spanning 146 stores, at ~0.9x EV/Sales (CY24) (excluding Graff Sales), reflects a disciplined and fair valuation.
While Damas has faced financial headwinds historically, this deal provides Titan Company Ltd. a unique opportunity to gain immediate scale advantage and access to a premium, well-established brand.
By leveraging its operational expertise and supply chain efficiencies, Titan is positioned to unlock significant value, stabilize growth, improve margins, and firmly establish itself as a dominant player in the lucrative GCC jewellery market.
We revise our FY27/28 revenue estimates by ~3% each; however, our EPS estimates remain unchanged. We maintain Reduce with an unchanged DCF-based target price of Rs 3,200/share (implying 49x Jun-27 P/E).
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