Review

TITAN COMPANY LTD.

Ticker : 500114
FV : Rs 1
52-Week H/L : Rs 1345/720.00

We had previously recommended Titan Company in vol. 36, no. 01, dated October 28, 2019, when the scrip was trading at Rs 1,378. It was recommended based on the company's positive performance in terms of fundamental parameters. Titan Company's product portfolio includes jewellery, eyewear, watches, fashion goods, and several other consumer goods. Considering quarterly consolidated financials, the company posted net sales of Rs 4,127 crore for Q2FY21, which is a decrease of 10.28 per cent in comparison to the net sales of Rs 4,600 crore reported for Q2FY20. PBDT for Q2FY21 came in at Rs 312 crore, contracting by 38.7 per cent compared to Rs 509 crore reported in Q2FY20. Its net profit for Q2FY21 declined by 44.44 per cent to Rs 174 crore from Rs 315 crore in Q2FY20. A faster rebound in sales is expected for Titan's wedding jewellery segment. Titan recently launched its first smartwatch, which would add to its revenue growth. Hence, HOLD.