Titan Q4 Review - Take A Breather; Earnings And/Or Narrative Upgrade May Take A While: ICICI Securities
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ICICI Securities Report
Titan Ltd. has seen a time correction in the last six months – correctly so, in our opinion. We believe it was in a zone where the valuation was stretched, expectations were high and the company had to materially surprise (for further up move).
We do note that Q3 was a blockbuster quarter but that happened for most discretionary categories. Q4 outcome was just about decent, in fact weaker than initially expected.
Second on jewelry hallmarking, we believe mandatory hallmarking (JH1, JH2) will likely create a level-playing field in the Indian jewelry market, driving further formalisation.
That said, the compliance till now appears to be less (strict) based on what the top players are suggesting. We believe once this is intensified, the tailwind may be significant.
On medium-to-long term initiatives, Titan (like always) seems to be having a lot of good work in the background (not just in jewelry).
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