Titan Company shares flat ahead of Q4 results, dividend announcement. Earnings preview & more

Titan Company shares were trading flat in an otherwise weak market on Wednesday morning, ahead of the announcement of Tata Group firm's March quarter results and dividend, if any. Analysts are largely expecting a strong quarter after the jeweller's Q4 business update where the company posted growth, especially in eye wear sement.

At 9.20 am, the stock was trading 0.05 per cent lower at Rs 2,663 on BSE. The scrip is up 3.88 per cent year-to-date.

Sharekhan expects Titan Company to declare 28.5 per cent YoY rise in net profit at Rs 729 crore compared with Rs 567 crore in the same quarter last year. It anticipated sales to rise 28.8 per cent YoY to Rs 10,042 crore from Rs 7,796 crore in the same quarter last year.

Antique Stock Broking expects profit for Titan Company to come in at Rs 695.40 crore. Sales are expected to jump 13.3 per cent YoY to Rs 8,240 crore.

"We understand that Titan's jewellery segment continued with its demand momentum in January and February led by deferred demand from November/ December and a favorable base. March witnessed some moderation on account of increase in gold rates," it said.

ICICI Securities said that Titan's has been a secular growth story so far, with consistent market share gains from unorganised players. Despite a sharp surge in gold prices in March quarter, it noted that Titan's jewellery space recorded a healthy growth of 23 per cent YoY for the quarter (excluding gold bullion sale in the base quarter: Rs 375 crore).

"Growth was also aided by partially disrupted base quarter. The key highlight during the quarter was more than 40 per cent YoY growth in the watches and wearable segment. Overall revenues are expected to increase 20 per cent YoY to Rs 9,337.60 crore with a healthy three-year CAGR of 25 per cent. Expect gross margins to improve 60 bps YoY to 25.8 per cent on account of enhanced product mix, it said. ICICI Securities sees Ebitda margin to improve 120 bps YoY to 11.4 per cent. PAT is seen at Rs 706.60 crore.

Titan may outperform the retail space for the quarter aided by the shift in the wedding season, said Nuvama Institutional Equities. Overall, analysts largely expect the Tata group firm to report a 25 per cent-plus growth in profit on a double digit rise in sales.

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