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Titan Q4 Review - Take A Breather; Earnings And/Or Narrative Upgrade May Take A While: ICICI Securities

Titan Q4 Review - Take A Breather; Earnings And/Or Narrative Upgrade May Take A While: ICICI Securities

An employee holds a 50-gram gold coin for a photograph inside a Titan Co. Tanishq jewelry store in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)
An employee holds a 50-gram gold coin for a photograph inside a Titan Co. Tanishq jewelry store in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

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 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).

Click on the attachment to read the full report:

ICICI Securities Titan Q4FY22 Results Update.pdf

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