BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
We like the good traction in new markets (new cities, low share markets and also south market – continued gains in Tamil Nadu) and share gains in a growing category (large part of consensus had dismissed category growth potential and believed Titan Company Ltd. is a just share gain story in a shrinking market).
Secondly, there are some concerns on (adjusted) margin trajectory given the expected leverage benefit from growth and also studded growth – we believe, the same is not really warranted given good consumer recruits are very healthy, who typically buy staples jewelry first (mix effect), also suggested by other players, and Titan's store expansion continues to be healthy.
Jewellery revenue of Rs 76 billion, implied 23% growth on three-year compound annual growth rate basis. Jewellery segment reported Ebit margin of 13.5% which has one-off benefit of 80- 90 basis points from diamond gains and inventory operations.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR