Short term Target: Rs. 250, 6 month Target – Rs. 285; STOP LOSS – Rs. 207.00; Market Cap: Rs. 20,867.41 Cr; 52 Week High/Low: Rs. 313.35 / Rs. 201.00.
It is notably to say here that, since November 2012, the Rupee has fallen 11.92 % as against dollar where as, internationally the gold prices have fallen nearly 28.13 % over the same period. With strident RBI rules the gold demand is expected to take a dip of around 200 tonnes, which can lower further regulatory action from RBI. At the current market price of Rs.232.05, the stock is trading at a PE of 21.17 x FY15E which compares with the sector average of around 27.5 x and mid cap sector at 24-25 x. While the regulation and demand environment will some what impact the stock and will tend it to trade at lower multiples. But still Titan can post Earnings per share (EPS) of Rs. 10.96 for FY15E. It still remains a solid long term play on the growth of the Indian Jewellery sector with proven management track record. It is expected that soon the demand environment will improve and expect the company to keep its growth story in the coming quarters also. One can ‘BUY’ Titan Industries with a short term target price of Rs. 250.00 and for Medium to Long term investment it could be a good buy for the target price of Rs. 285.
|SALES (₹ Crs)||10,113.00||11,933.00||14,200.20||16,898.30|
|NET PROFIT (₹ Cr)||725.00||804.00||973.00||1,163.30|