NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
Titan Company Ltd.'s Q2 FY25 profitability was below estimate. The jewellery segment reported 25.5% YoY (ex-bullion) sales growth led by increased gold purchases following a reduction in custom duties. The overall buyer growth was at ~12%, while average selling price grew by ~10%.
The jewellery division's Ebitdam was impacted due to a one-time charge of ~Rs 2.9 billion attributed to custom duty reduction and lower studded mix. Going ahead, margins are expected to remain under pressure due to increased discounting and competition.
We have reduced our FY25/26E EPS estimate by 8.6/6.8% at Rs 43.6/57.4 to factor in inventory losses from declining gold prices and increased discounting.
We have also introduced FY27E EPS at Rs 66.8. Given heightened competition and ongoing margin pressures, we value the stock at 45x FY27E resulting in revised target price of Rs 3005. Consequently, we are downgrading the stock to ‘Sell' rating.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
