Titan Industries - Healthy RSG & SSG gives confidence, Maintain BUY - Emkay

Reco: BUY
CMP: Rs259
Target Price: Rs285

- Rev. marginally below exp. at Rs 22.9 bn, 9% yoy growth, EBIDTA margin surprise with +100bps yoy to 11% led by higher jewellery margins. APAT at Rs 1.8bn, 21% yoy growth

- Jewellery volume at -11% in line with est. No disappointment as decline led by lower coin sales, but plain gold volumes decline only 1-2%. Watches grows 13% led by price growth

- Healthy run rate in retail sales growth (RSG) and same store growth (SSG) is most store formats; indicate buoyancy may continue in ensuing quarters.

- Space addition on track, while SSG & RSG remain resilient; both to aid revenue growth, while overheads control to drive margin expansion. Maintain Buy with revised PT of Rs 285

Source : Equity Bulls

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