Titan Company Ltd Q4 outcomes ignored analyst estimates via nine-12 consistent with cent on 70-one hundred basis factors jewellery margin pass over and better subsidiary loss, leading to downgrades in its profits projections for FY25 and FY26. Whereas jewelry topline increase was wholesome at 20 in line with cent, the margin pass over is a factor of high opposition and better gold blend in studded income, analysts stated.
Emkay Global said the close to-time period EPS boom may be hit through accelerated gold prices and introduced promotions.
"But we adore Titan's focus on proportion gains (vs close to-time period margin), as growth outlook stays sturdy, at 20 in step with cent CAGR. Titan upheld its steering of jewelry EBIT margin band of 12-thirteen p cent, which although might probably live on the lower-end, as Q1 is possibly to miss the band with the aid of a margin," Emkay stated.
This brokerage has reduce its profits estimates by five-6 in line with cent on near-term margin pain however encouraged shopping for into any big corrections. Emky suggested a lower goal of Rs 4,a hundred and fifty for the Titan stock.
Nuvama stated the nine in keeping with cent omit in consensus profits become because of weaker jewelry margins (12.2 per cent versus estimate of 13 in line with cent) for two consecutive quarters. Given the weakness in margins to maintain inside the close to term, especially in H1FY25, it reduce FY25E/26E PAT via 6 in line with cent every and downgraded the stock to ‘HOLD’ from ‘BUY’ with a revised goal rate of Rs three,867 (earlier Rs 4,106).
Motilal Oswal said the near-term boom outlook for Titan Company appears subdued because of high gold inflation affecting call for sentiment, that is a typical trend at some stage in inflationary durations.
Despite the near-term jitteriness, the agency stays competitive in its boom outlook, driven by using new save additions, appealing designs, and market percentage gains, it said.
"Titan also keeps a jewelry EBIT margin of 12-thirteen according to cent for FY25. We will screen the near-time period consumption fashion. However, because of aggressive pressure on margins, we reduce our EPS estimates via 6 per cent/five consistent with cent for FY25/26. Reiterate BUY with a target of Rs 4,a hundred," Motilal Oswal stated.
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