Titan Q4 Review - Long Term Intact: Prabhudas Lilladher
Necklaces and earrings are displayed inside a Titan Co. Tanishq jewelry store during the festival of Dhanteras in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

Titan Q4 Review - Long Term Intact: Prabhudas Lilladher

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.

Prabhudas Lilladher Report

Titan Co. reported numbers in-line with our estimates although it disappointed on margin front due to loss on account of customs duty (our estimate Rs 600-650 million), market share focus and deterioration in sales mix.

Near term outlook looks hazy with second Covid-19 wave leading to 50% store closures, postponement of weddings and deferment of discretionary expenses.

However, we remain optimistic about jewellery division growth on back of:

  1. Market share gains from regional and small players,

  2. Focused regional marketing campaign leading to market penetration,

  3. Increase in studded jewellery contribution from 30% in Q4 to normal 34-36% levels,

  4. Increase in online and omnichannel sales led by expansion of Caratlane.

Click on the attachment to read the full report:

Prabhudas Lilladher Titan Company Q4FY21 Result Update.pdf

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