Titan Company is primarily involved in manufacturing and sale of Watches, Jewellery, Eyewear and other accessories and products.
3QFY20 consolidated revenue grew 11.2% YoY to Rs.6530 Cr. Gross margins were down to 25.5% despite lower other expenses and ad spends due to higher staff costs. Segment wise, jewellery sales grew 12.2% YoY to Rs.5610 Cr. (-5% volume growth) and watches sales declined 2.2% YoY (-10% volume growth) to Rs.630 Cr.
Titan is expected gain market share further in 4Q as unorganized players are facing liquidity crunch and lack of access to capital. Company added 34 Tanishq stores in 9MFY20.
Valuation of the company seems fair at 56.1x FY21 EPS'
Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.
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