Titan Industries Ltd Gold price volatility impacts… HOLD :Emkay

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Titan Industries Ltd

Gold price volatility impacts… Maintain Hold

HOLD

CMP: Rs226                                        Target Price: Rs225

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n     Titan sales registered 36.5% yoy revenue growth to Rs 21 bn, in line with our expectations. PAT grew 16% yoy to Rs 1.5 bn, in line with our estimates

n     As expected, volumes in jewellery remained muted at 3% yoy - Driven by gold prices, jewellery reported 45% yoy growth  to Rs 16.3 bn with PBIT margins remaining stable at 9.2%

n     Watches division recorded 16% yoy revenue growth to Rs 4.2 bn, driven by 19% yoy volume growth. PBIT margins in this segment declined 540 bps to 16.1%

n     Revise our EPS estimates upwards by +3% to Rs 6.8 for FY12E and maintain FY13E EPS of Rs 8.2 - Maintain our HOLD rating with target price of Rs 225/share