Titan Company to share Q4 results on Wednesday. Can Rs 12,400 crore Jhunjhunwala stock bet deliver?

Titan Company, Rekha Jhunjunwala's biggest stock bet, is set to announce March quarter results on Wednesday. Analysts largely expect the Tata group firm to report a 25 per cent-plus growth in profit on a double digit rise in sales. Titan may outperform the retail space for the quarter aided by the shift in the wedding season, said Nuvama Institutional Equities.

Sharekhan expects Titan Company to report 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 expects sales to rise 28.8 per cent YoY to Rs 10,042 crore from Rs 7,796 crore in the year-ago quarter.

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.

Antique Stock Broking sees profit for Titan Company at Rs 695.40 crore. Sales are seen rising 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.

Rekha Jhunjhunwala held about 5.3 per cent stake in the company as of March 31, which was worth Rs 12,425 crore at last count.

The Tata group firm reported a 25 per cent year-on-year rise in its top line for the March quarter, led by higher contributions from watches & wearables and its emerging businesses. Titan Company reported a 41 per cent growth in watches & wearables segment amid a strong growth in analog watches and almost tripling of revenues from wearables. The company’s jewellery business expanded 23 per cent year-on-year and added 31 new stores during the quarter.

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