30 Jan 2024 , 10:52 AM
Result date: February 1, 2024
Recommendation: Add
Target price: ₹3,700
Titan Company (Titan) continued its strong performance in the December quarter, led by 23% (ex- bullion) year-on-year growth in the Jewelry segment. Growth was led by 21% growth in domestic business amid double-digit growth in buyers and some improvement in selling price. Growth in plain gold and coins in the festive quarter exceeded the studded sales growth, driven by higher consumer interest in gold despite the elevated prices and volatility. The company could post revenue growth of 22% over the year-ago quarter, believe analysts at IIFL Capital Services.
Titan’s Jewelry business’ EBIT margin could marginally contract by 10 basis points relative to the year-ago quarter to 12.5%. Watches division’s sales growth came in at 21% with EBIT margin expected at 12.5% — up 153 basis points over the year-ago quarter. Sales of the Eyewear division declined 3% on a year-on-year basis. This division’s EBIT margin is expected to contract by 340 basis points year-on-year to 15%.
The company’s Profit After Tax or PAT could grow 12% relative to the year-ago quarter.
Important management insights to watch out for:
₹ Million |
December 2023 estimates |
YoY change |
Revenue |
133,878 |
22.1% |
EBITDA |
15,808 |
18.9% |
Profit After Tax |
10,665 |
12.1% |
Source: IIFL Research
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