Titan Share Target; What Should Investors Do After Q4 Results?

Titan Company’s stock fell in early trading on May 4 after the company reported earnings for the March quarter (Q4FY22).

Titan Company reported a 7.2 percent drop in its year-over-year (YoY) net profit for the quarter ended March 2022, to Rs 491 crore, a far cry from analysts’ expectations of Rs 618 crore.

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During the period under review, the company’s revenues increased by 2% year over year to Rs 7,276 crore, above the street’s forecast of Rs 6,935 crore. A dividend of Rs 7.5 per share was also proposed by the company’s board for the fiscal year ending March 31, 2022.

Here is what brokerages have to say about stock and the company post March quarter earnings:

Prabhudas Lilladher | Target Price : Rs 2701

We lower our FY23/24 EPS projections by 5.9% /4 percent and maintain our BUY recommendation with a target price of Rs 2,701 based on DCF (earlier Rs 2,754).

Because of 1) the volatility in gold prices, the corporation reported a lower set of figures (wedding category saw degrowth 9 percent YoY) 2) The Omicron scare in January resulted in store lockdowns. 3) Weak growth across the board, as inventory gains of Rs 1.3 billion in diamonds were more than offset by VRS of Rs 510 million and ex gratia to workers of Rs 720 million.

We forecast a 25.3 percent PAT CAGR in FY22-24 and remain optimistic about the structural narrative, which includes market share growth, a solid financial sheet, a franchisee-based business, and a strong brand. However, at 64.3 times FY24, there is minimal space for re-rating.

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Motilal Oswal | Target Price : Rs 2900

Our EPS prediction for FY23/FY24 has not changed much.

Given its market share of less than 10% and the ongoing problems of its unorganised and organised competitors, TTAN has a long expansion runway. It has unrivalled medium-to-long-term profit growth visibility.

Despite the volatility in gold prices and disruptions caused by COVID, the company’s profits CAGR for the five years ending in FY22 was exceptional (24 percent). We predict this trend to continue, with earnings CAGRs of above 20% in the next years.

Near-term multiples look to be high, but the stock’s extended runway for profitable expansion deserves premium multiples. With a target price of Rs 2,900 per share, we retain our Buy rating (75x FY24E EPS).

Sharekhan | Target Price : Rs 2900

Multiple variables influenced Titan’s Q4FY2022 performance. The firm has planned for predicted strong sales during the auspicious days and the postponement of the wedding season, which would assist the jewellery industry perform well in Q1FY2023 and subsequent quarters.

While the jewellery industry is predicted to expand by double digits on a constant basis, other industries (such as watches and eye care) are likely to scale up quickly with new tactics.

Titan is well positioned to achieve revenue and PAT CAGRs of 19% and 28%, respectively, throughout the FY2022-FY2024 period.

From a long-term viewpoint, any drop from present levels might be viewed as a favourable chance to buy the stock. We keep our Buy rating on the stock and our price target (PT) of Rs 2,900 unchanged.

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Morgan Stanley | Target Price : Rs 2720

Titan Company is still rated overweight by Broking House, with a target price of Rs 2,720 per share, after Q4 earnings fell short of expectations.

According to CNBC-TV18, the demand climate in Q4 was hard, but management is positive about the prognosis for FY23, citing encouraging trends in April.

Jefferies | Target Price : Rs 2600

The company gets a hold recommendation from the research firm, with a target price of Rs 2,600 per share.

The Q4 results were below expectations, owing mostly to a loss on the reported jewellery margin.

According to CNBC-TV18, company management reiterated jewellery margin target of 12-13 percent.

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At 09:25 hrs Titan Company was quoting at Rs 2,346.55, down Rs 40.05, or 1.68 percent on the BSE.

Disclaimer :- The views and recommendations made above are those of individual analysts or broking companies, and not of Ours.
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