Emkay Global Financial Services has a hold call on Titan Company Ltd.
with a target price of Rs 990.
The current market price of Titan Company Ltd.
is Rs 924.4 Time period given by analyst is a year when Titan Company Ltd.
price can reach the defined target.
Titan Company Ltd., incorporated in 1984, is a large-cap consumer durables company with a market cap of Rs 82688.40 crore.Investment rational by Emkay GlobalConsidering the higher jewellery margin expansion, we increase FY19-20E earnings by 5-8%.
However, while margins have surprised positively, jewellery growth has been slower than expectation over the last three quarters, which may induce downside to the high consensus expectations.
Current valuation at 47x FY20E earnings appears rich.
We maintain HOLD with TP of Rs990, now valuing Titan at 45x June-20E EPS.