Titan Industries Ltd - Focus on Space addition and SSG, Retain BUY - Emkay

Reco: BUY
CMP: Rs 222
Target Price: Rs 260

- Titan Q1FY13 performance below expectations. Revenues at Rs 22.1 bn, 9% yoy growth, EBIDTA margin up 10bps yoy to 9.6% and APAT at Rs 1.6bn, growth of 9% yoy

- Jewellery segment posted 21% volume decline against our exp. of 12% volume decline. Watches segment grows purely driven by price increases (~17%), as volume declines 3% yoy

- Store expansion of 200K sq ft for FY13E on track, added 37k sq ft in Q1FY13. Hereon, Same store growth (SSG) key trigger for achieving guided revenue and PAT growth

- Management lowers revenue guidance to 15-20% and reiterates focus on earnings growth. Earnings revised down by 4%/6% for FY13E/FY14E. Retain BUY with PT of Rs 260.

Source : Equity Bulls

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