Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    

| More

Titan Company - Q1FY21 Result Update - ICICI Securities

Posted On: 2020-08-12 02:53:59

As guided by the management in its pre-quarterly update, jewellery division reported revenue de-growth of 57% YoY to Rs. 1783 crore (including bullion sale of Rs. 601 crore). Excluding bullion sale, revenue for the division fell 71% YoY (grammage de-growth: 81%) with sales in May, June around 20%, 72%, respectively. The company is expecting recovery rate to improve at 80% of pre-Covid levels by end of Q2FY21. The impact of pandemic was much more severe on the watches division as the segment reported revenue de-growth of 90% YoY to Rs. 75.0 crore. Sales continued to remain under stress, with a recovery rate of 40% in July. Revenue from eyewear division de-grew 80% YoY to Rs. 30.0 crore. Overall consolidated revenue de-grew 62% YoY to Rs. 1979.0 crore. Gross margins deteriorated 550 bps YoY to 22.0% owing to lower share of studded ratio (18% vs. 25% YoY) and higher demand for plain gold jewellery. Despite sharp reduction in advertising spend (down 86% YoY), profitability in the quarter was materially impacted due to other expenses staying elevated (certain expenses pertaining to ineffective hedge that Titan did not quantify). Hence, EBITDA losses were at Rs. 253.0 crore. Currently, ~97% of stores are operational and management has reiterated its stance of achieving normalcy levels by Q4FY21E.

Valuation & Outlook

Titan continues have a comfortable liquidity position due to adequate banking limits and ability to issue commercial paper at attractive rates. As on June 30, the company is net cash surplus largely owing to sale of excess inventory in the form of gold. Titan remains a quality franchise with strong brand patronage. Over the years, the company has consistently exhibited its ability to gain market share amid a tough industry scenario (gained market share in June & July). Robust balance sheet and asset light distribution model have enabled Titan to outperform peers. While near term headwinds may hamper the performance of the company, we continue to remain structurally positive on the company and its long term growth prospects. We maintain HOLD with a revised target price of Rs. 1170 (52.0x FY22E EPS, previous target price: Rs. 1095).

For details, click on the link below:

Shares of Titan Company Limited was last trading in BSE at Rs.1066.5 as compared to the previous close of Rs. 1107.8. The total number of shares traded during the day was 338798 in over 17907 trades.

The stock hit an intraday high of Rs. 1087.6 and intraday low of 1050.2. The net turnover during the day was Rs. 361417628.

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

HeidelbergCement India - Play on better priced Central India; initiate with BUY - ICICI Securities

Healthcare - Diagnostics: Multiple tailwinds likely to emerge - ICICI Securities

Mazagon Dock Shipbuilders Ltd - IPO Review - ICICI Securities

Persistent Systems - 28th September 2020 - Angel Broking

Canara Bank - 28th September 2020 - Angel Broking

Subscribe to UTI Asset Management Company Limited - IPO Note - Angel Broking

Multiplex Sector - Mr. Jyoti Roy - DVP - Equity Strategist, Angel Broking Ltd

Sale of Sequent stake to Strides Pharma - Angel Broking

Subscribe to Mazagon Dock Shipbuilders Ltd - IPO Note - Angel Broking

JSW Energy - First big renewable step - ICICI Securities

V-MART Retail - Best play in value fashion segment; initiating with BUY - ICICI Securities

Gas sector - New winners and losers likely on policy changes in gas sector - ICICI Securities

Mazagon Dock Shipbuilders Limited - IPO Note - Geojit

UTI Asset Management Company Limited - IPO Note - Geojit

Preview on RBI Monetary Policy - Oct 2020 - Shanti Ekambaram

Rollover Report for September 2020 - October 2020: Angel Broking

Covid Recovery Pulse - Sep 25, 2020 - ICICI Securities

Quick Comment - Suven Pharmaceuticals - ICICI Securities

Derivatives Strategy - Sep 25, 2020 - Positional Option - ICICI Securities

Gladiator Stocks - Ramco Cement - ICICI Securities

IPO Review - UTI Asset Management Company - ICICI Securities

Stock of the Day - Zensar Technologies - Sep 25, 2020 - Angel Broking

Accenture Q4FY2020 Result - Angel Broking

Granules India receives ANDA approval - Angel Broking

Zydus Cadila receives US FDA approval - Angel Broking

Cipla - ANDA approval - Mr. Yash Gupta - Equity Research Associate, Angel Broking Ltd

Mindspace REIT - Mr. Yash Gupta - Equity Research Associate, Angel Broking Ltd

UTI AMC - IPO - Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

Balkrishna Industries - Growth momentum continues - ICICI Securities

Rollover Analysis (September 25): Nifty starts October series with low OI amid high volatility

Derivatives View (September 25): Sell Bank Nifty in range of 20650-20750 - ICICI Securities

Rollover Analysis - Sept 20: Selling climax on expiry as markets crumble - YES Securities

Zydus Wellness - Leadership in niche categories; initiate at BUY - ICICI Securities

Power - Setting the stage - ICICI Securities

Company Update - Elgi Equipments - ICICI Securities

Nano Nivesh - The Anup Engineering - ICICI Securities

RBI OMO announcement of Rs. 10000 crore - Angel Broking

TCS deal win - Sep 24, 2020 - Angel Broking

View on Pre-Monetary Policy by Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank

US FDA approval to Zydus Cadila - Angel Broking

HDFC Securities Institutional Research Desk: Cement Sector Thematic - Spotting the sweet spot

Bharat Forge - Expectation hurdle remains steep - ICICI Securities


Mutual Fund Review - September, 2020 - ICICI Securities

UTI AMC announces IPO date - Angel Broking

Asian Paints - Mr. Amarjeet Maurya - AVP - Mid Caps, Angel Broking Ltd

Britannia Industries - Mr. Amarjeet Maurya - AVP - Mid Caps, Angel Broking Ltd

Hexaware Technologies (Not Rated): Hexaware accepts 475/share as final delisting price - ICICI Securities

CAMS IPO - Day 2 Subscription - Angel Boking

Chemcon Speciality Chemicals - IPO subscribed 12.62 times on second day - Angel Broking

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019