Titan - Tepid Margin Outlook A Near Term Drag: Prabhudas Lilladher

"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..Prabhudas Lilladher Report.We are cutting FY25/26 earnings per share estimates by 12.5% and 9.9% given cut in Ebit margin guidance across Jewellery and Watches. Titan Company Ltd. in looking at 15-20% topline growth over FY24-27 as it aims to further scale up both Jewellery and watches and increase investment behind emerging segments like Taneira, Titan Eye+, Wearables and Women hand bags..Although jewellery business is likely to sustain 15%-20% sales CAGR, Ebit margin guidance band is cut from 12-13% to 11.5-12.5%. Near term pressure emanates from rising competition from both regional and national players, impact of rising gold prices on demand and its ability to charge premium on physical gold and making charges. Watch business will focus on premium/ economy segment, which has just single digit market share, however price erosion in high growth wearables segment will drag margins in the interim. Eyecare business has reached a critical mass and benefits of cost restructuring will start being reflected from FY25 itself. IBD is looking at 5% contribution to sales by FY27 with 25 Tanishq stores. We estimate 20.2% PAT CAGR over FY24-26. We expect H1 FY25 performance to remain tepid due to higher gold prices and weak marriage season, with strong recovery in H2 FY25. We expect back ended returns and advise accumulation at lower levels for medium term gains with DCF based target price of Rs 3578 (Rs 3767 earlier)..Click on the attachment to read the full report:.Titan - Buoyant Prospects Beyond The Near-Term Blip: Motilal Oswal.DISCLAIMERThis 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."

Titan - Tepid Margin Outlook A Near Term Drag: Prabhudas Lilladher

Near term pressure emanates from rising competition from both regional and national players

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Titan - Tepid Margin Outlook A Near Term Drag: Prabhudas Lilladher

Near term pressure emanates from rising competition from both regional and national players

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