Titan Industries - March 2013 Results Preview - Motilal Oswal

- We expect TTAN to post sales of INR27.1b, up 19% YoY. Recent expansion in the jewelry segment will aid revenue growth, in our view.

- We estimate 29% increase in EBITDA, with margin expansion of 70bp YoY. PAT should grow 18% YoY to INR1.7b.

- We note that the gold pricing impact for the quarter is the lowest in three years. Stable pricing can stoke volumes, going forward; expect wedding season demand to pick up in April-May.

- The watch segment should post another subdued quarter, though sequential improvement is not ruled out.

- We note that competitive intensity in the organized jewelry segment is building up, with the recent opening of three showrooms by Kalyan Jewellers, a new entrant in Mumbai.

- The stock trades at 25.1x FY14E EPS and 20.2x FY15E EPS. Buy.

Source : Equity Bulls

Keywords