ICICI Securities: Titan’s Faster-Than-Expected Q2 Recovery
Gold coins and bars sit on a tray inside a Titan Co. Tanishq jewelry store during the festival of Dhanteras in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

ICICI Securities: Titan’s Faster-Than-Expected Q2 Recovery

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Titan Company Ltd.’s Q2 FY21 jewellery sales declined just 2%, however, adjusting for the ineffective hedge, sales declined 16%.

More importantly, adjusting for one-offs, jewellery Ebit margins declined only 170 basis points to 9.2% despite an inferior product mix.

Potential growth drivers are -

  1. boost to volumes from (somewhat) stable gold prices,
  2. consumers (likely) accepting higher gold prices and expecting further inflation and
  3. market share gains (liquidity challenges for smaller competitors).

Click on the attachment to read the full report:

ICICI Securities Titan Q2FY21 Results Update.pdf

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