Titan has transformed itself from a watch maker to an enviable lifestyle company, with jewellery being the leading vertical (85% of revenues). Robust distribution network comprises 2300+ stores spread across 2.9+ mn sq ft.
Titan reported a healthy operational performance with strong beat on the margins front. Buoyed by strong festive/wedding season and a normalised quarter after a gap of two years, the jewellery division registered its second highest ever quarterly revenues in Q1FY23.
Titan has been an exceptional performer in the discretionary space with stock price appreciating at ~32% CAGR in last five years.
We value Titan at ₹ 2800 i.e. 66x FY24E EPS
Besides Titan in our retail coverage, we also like Bata India.
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