Hold Titan Industries Ltd - Emkay

Reco: HOLD
CMP: Rs 202
Target Price: Rs 197

Slide Continues, Maintain Hold

- Titan Q3FY12 performance, revenues meets expectations at Rs 24.4 bn, growth of 25% yoy, but PAT below estimates at Rs 1.6bn, growth of 19.2% yoy

- As expected, jewellery volumes de-grew 5% yoy – growth largely driven by high gold prices, jewellery posted 25% yoy growth to Rs 19.9 bn; PBIT margins fell 50bps yoy to 9%

Watches segment reported 17.2% yoy revenue growth to Rs 3.8 bn, led by 11% volume growth. However, PBIT margins continued its decline to 12.5%, down 590bps yoy

- Titan has multiple challenges, (1) sagging volume growth in jewellery (2) lower margins in watches and jewellery business … Retain Negative bias with HOLD rating.

Source : Equity Bulls

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