(TITIND)

CMP: | 1800 Target: | 2110 (17%) Target Period: 12 months BUY

August 5, 2021 Strong business model to aid faster recovery…

About the stock: Titan has transformed itself from a watch maker into an enviable

lifestyle company, with being the leading vertical (82% of revenues). Robust distribution network comprises 1900+ stores spread across 2.5mn sq. ft.  Titan has consistently displayed its ability to gain market share amid a tough Particulars

industry scenario owing to its robust balance sheet (30%+ RoCE and cash Particular Amount & investments worth | 2000+ crore) and strong brand patronage Market Capitalisation (| Crore) 1,59,801.5

Debt (FY21) (| Crore) 165.0 Update Result Q1FY22 Results: Covid induced lockdowns disrupted the performance for Titan in Cash & investments (FY21) (| Crore) 3,407.3 Q1FY22. Green-shoots were visible with strong pent-up demand from July onwards. EV (| Crore) 1,56,559.2  Revenue (excluding bullion sale) grew 120% YoY to | 3004 crore (~60% of 52 week H/L 1858 / 1048 pre-Covid levels). Reported revenue grew 75% YoY to | 3473 crore Equity Capital (| Crore) 88.8 Face Value (|) 1  Curtailment of marketing spends and overheads resulted in Titan reporting

EBITDA margin of 3.9% vs. EBITDA loss of | 253 crore in Q1FY21 Shareholding pattern  PAT was at | 18.0 crore vs. net loss of | 294 crore in Q1FY21 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 What should investors do? Titan has been an exceptional performer in the Promoter 52.9 52.9 52.9 52.9 52.9 discretionary space with stock price appreciating at ~34% CAGR in last five years. FII 17.6 18.1 18.6 18.1 18.4 DII 10.8 10.9 11.0 11.1 9.9

 We continue to remain structurally positive and maintain BUY rating Others 18.7 18.2 17.5 17.9 18.8

Target Price and Valuation: We value Titan at | 2110 i.e. 60x FY24E EPS Price Chart Key triggers for future price performance: 2000 25000 1500 20000  Robust balance sheet and asset light distribution model has enabled it to 15000 1000 outpace peers in terms of store addition (to add ~35 stores in FY22) 10000 500  Thrust on wedding space is bearing fruit with wedding jewellery becoming 5000 a critical growth driver and its share in overall jewellery revenue increasing 0 0

Apr-21 Apr-20

meaningfully Apr-19

Dec-18 Dec-19 Dec-20

Aug-19 Aug-20 Aug-21 Aug-18

Retail Equity Research Equity

 Gradual recovery in studded ratio to aid margins, going forward Titan BSE 500 –

 With share of ~6%, Tanishq’s penetration is still at a very nascent stage in Key risks the Indian jewellery market. This provides immense opportunity for Titan to enhance its market share. Mandatory gold hallmarking would further (i) Extended lockdown can lower enhance market share gains from unorganised space sales (ii) Delay in expansion of store  Working capital management has been a priority for the company with tight network

control on inventory and higher focus on gold on lease replenishment. Research Analyst Securities ICICI Subsequently, the company has substantially improved its cash position Bharat Chhoda  We bake in revenue, earnings CAGR of 20%, 47%, respectively, in FY21-24E [email protected]

Cheragh Sidhwa Alternate Stock Idea: Apart from Titan, in our retail coverage we also like [email protected]  Inherent strength of brands (Westside, Zudio, Star, Zara) and proven business model position Trent as a key beneficiary of economic unlock  BUY with a target price of | 1,060/share

Key Financial Summary

5 year CAGR FY22E FY23E FY24E 3 year CAGR Financials FY20 FY21 (FY16-21) (FY21-24E) Net Sales 21,051.5 21,644.0 14.0 25,804.4 31,865.0 37,814.5 20.4 EBITDA 2,466.6 1,724.0 13.0 2,985.2 4,039.2 4,825.9 40.9 PAT 1,501.4 973.0 1,941.6 2,716.6 3,129.1 47.6 EPS (|) 16.9 11.0 21.9 30.6 35.2 P/E (x) 106.4 164.2 82.3 58.8 51.1 EV/Sales (x) 7.6 7.2 6.1 4.9 4.2 EV/EBITDA (x) 64.9 90.8 52.3 38.5 32.7 RoCE (%) 28.7 17.6 28.5 32.0 32.0 RoE (%) 22.5 13.0 21.4 24.1 23.0

Source: Company, ICICI Direct Research Result Update | Titan Company ICICI Direct Research

Key takeaways of recent quarter & conference call highlights

 Jewellery division: As guided by the management in its pre-quarterly update, the jewellery division (excluding gold bullion sale) reported 115% YoY revenue growth (~63% recovery rate on base of Q1FY20). During the quarter, the company optimised excess inventory by selling excess raw gold worth | 424 crore (| 601 crore in Q1FY21). Overall jewellery sales were at | 3050 crore (up 67% YoY). Studded ratio was at 22% vs. 18% in Q1FY21, while share of gold coins halved to 7% in Q1FY22. Total store operational days were at 73%, 10% and 58% for April, May and June, respectively, and 47% for the quarter. With a gradual lifting of restrictions on stores, sales have bounced back sharply towards Q1 end with good momentum till date. The management indicated that underlying gross margins (excluding impact of ineffective hedging and bullion sale) in Q1FY22 were at the best levels in five quarters. EBIT margins for the jewellery division were at 6.5% (Q4FY21: 10.7%, Q1FY21: (-)3.0%). Robust performance in challenging times reaffirms our thesis of long term market share gains for Titan. Expect revenue recovery to pick up pace from Q3 onwards (festive season) and build in revenue CAGR of 20% in FY21-24E

 Watches & other divisions: Watches division reported 285% YoY growth (~40% of Q1FY20 base) to | 293 crore. The division witnessed rapid recovery in walk-ins with re-opening of stores, which was seen in only jewellery division last year. Total store operational days were at 70%, 24% and 51% for April, May and June, respectively. Eyewear division reported revenue growth of 123% YoY (45% of Q1FY20 base) to | 67 crore  Reported gross margins improved 50 bps YoY to 22.4% but the management indicated that underling gross margins (excluding impact of ineffective hedging and bullion sale) was significantly better owing to favourable product mix. Sharp curtailment of expenses (marketing and other expenses down 51% and 38% QoQ, respectively) resulted in the company reporting EBITDA margins of 3.9% (I-direct estimate: 3.6%). The company reported EBITDA of | 137.0 crore. PBT for Q1FY22 was at | 39.0 crore (Q1FY21: loss of | 357 crore). Higher tax rate (53%) resulted in the company reporting PAT of | 18.0 crore (Q1FY21 loss of | 294 crore) Q1FY22 Earnings conference call highlights: Jewellery division:  On demand trends, the first half of July has been better owing to higher number of wedding days while the second half of July was comparatively slower. The studded activation in July has seen good traction. Studded mix at retail level was 25% in Q1FY22 vs. 21% in Q1FY21 and 28% in Q1FY20. The recovery has been better but has not yet reached pre-Covid levels  Titan’s wholly owned subsidiary Titan Commodity Trading started its operations and Titan has started hedging gold through its subsidiary. Titan has incorporated the subsidiary to reduce counter party risk in gold hedging and also save on costs related to gold hedging  The company indicated that in the last two to three years Tanishq Jewellery stores have opened in many smaller towns. The sales per store is lower in smaller towns but the overall productivity and profitability is in line with majority of the store network. Titan has guided for 35 new store additions for FY22  On the region specific performance, has performed well for the company (gained market share). The company is doing a lot of localised activities in Uttar Pradesh, Bihar, Jharkhand and Odisha. Also, Titan is exploring a couple of other new markets but waiting for normalisation of trade scenario. In all these regions, the company is looking to provide the customer with state specific jewellery product design & customisations

ICICI Securities | Retail Research 2 Result Update | Titan Company ICICI Direct Research

 On the competitive intensity front, the competition continues to be high with varied offers and discounting resorted to by competition. However, the company is not looking to participate in higher discounting and is likely to continue its focus on providing better products and customer service  Titan considers compulsory hallmarking of gold to be beneficial for larger players as smaller players would need to increase their making charges. Lower difference in making charge between local players and Tanishq would enhance the desirability of Tanishq products. Also, product design capabilities and other customer service attributes would increase the affinity for branded jewellery players  Other segments: The contribution of wearables to the watches division revenue is less than 5% of watches revenue. Wearables have been growing faster than watches while the recovery in wearables is also better than watches  On the eyewear business front, the company is planning a rapid expansion of store network in seven to eight major cities along with entering new smaller towns and cities. The branding focus has shifted from eyewear to eye care  On Taneira (ethnic wear and saree brand), the management indicated that it has aspirations of scaling the business significantly and is waiting for normalcy in trade scenario to push growth

Despite various headwinds, Titan has, over the years, withstood challenges and emerged as a resilient player. Though the near term may present a volatile demand scenario, we believe Titan is a structural growth story and appears to be a key beneficiary of the unorganised to organised shift in the Indian jewellery market. Focus on markets share gains and maintaining balance sheet strength positions Titan as our preferred pick in the discretionary category. We bake in revenue and earnings CAGR of 20% and 47%, respectively, in FY21-24E. We reiterate BUY with a revised target price of | 2110 (60x FY24E EPS, previous TP: | 1800).

ICICI Securities | Retail Research 3 Result Update | Titan Company ICICI Direct Research

Exhibit 1: Variance Analysis Q1FY22 Q1FY22E Q1FY21 YoY (%) Q4FY21 QoQ (%) Comments Revenue 3473.0 3015.0 1979.0 75.5 7494.0 -53.7 On a low base of Q1FY21, grammage grew by 124% YoY

Reported gross margins came in below our estimates Raw Material Expense 2,695.0 2,287.4 1,545.0 74.4 5,837.0 -53.8 owing to higher share of gold bullion in revenues Employee Expenses 313.0 275.6 260.0 20.4 290.0 7.9 Advertising Expenses 49.0 35.6 21.0 133.3 101.0 -51.5 Other Expenses 279.0 308.2 406.0 -31.3 449.0 -37.9

Company curtailed overheads on a QoQ basis with EBITDA 137.0 108.3 -253.0 -154.2 817.0 -83.2 sharp decline in marketing spends EBITDA Margin (%) 3.9 3.6 -12.8 1673 bps 10.9 -696 bps Depreciation 95.0 94.9 93.0 2.2 93.0 2.2 Interest 49.0 52.5 52.0 -5.8 51.0 -3.9 Other income includes rent waiver to the tune of | 7 Other Income 46.0 58.7 41.0 12.2 57.0 -19.3 crore

PBT before Exceptional item 39.0 19.6 -357.0 -110.9 730.0 -94.7 Exceptional Item 0.0 0.0 0.0 0.0 PBT 39.0 19.6 -357.0 -110.9 730.0 -94.7 Tax Outgo 21.0 4.9 -63.0 -133.3 162.0 -87.0 PAT 18.0 14.7 -298.0 -106.0 567.0 -96.8

Key Metrics Jewellery Revenues (| Crore) 3,050.0 2,531.0 1,824.0 67.2 6,678.0 -54.3 SSSG: 117%, Retail sales growth: 115%

Segment EBIT Margin (%) 6.5 NA -3.0 10.7 Watches

Revenues (| Crore) 293.0 288.8 76.0 285.5 559.0 -47.6

Segment EBIT Margin (%) -20.8 NA -215.8 6.8

Source: Company, ICICI Direct Research

Exhibit 2: Change in estimates FY22E FY23E FY24E (| Crore) Old New % Change Old New % Change Introduced

Revenue 25,738.2 25,804.4 0.3 31,262.0 31,865.0 1.9 37,814.5

EBITDA 2,964.5 2,985.2 0.7 3,961.6 4,039.2 2.0 4,825.9 EBITDA Margin (%) 11.5 11.6 5 bps 12.7 12.7 0 bps 12.8 PAT 1,931.2 1,941.6 0.5 2,660.3 2,716.6 2.1 3,129.1 EPS (|) 21.8 21.9 0.5 30.0 30.6 2.0 35.2

Source: Company, ICICI Direct Research

ICICI Securities | Retail Research 4 Result Update | Titan Company ICICI Direct Research

Financial story in charts

Exhibit 3: Revenue trend

Source: Company, ICICI Direct Research. Other business includes ethnic segment

Exhibit 4: Divisional performance (revenue)

Source: Company, ICICI Direct Research

Exhibit 5: Jewellery segment growth Exhibit 6: Watches segment growth

80 80 60 60 40 40 20

20 -

% %

- (20)

FY17 FY18 FY20

FY22E FY23E FY24E

FY19A FY21A

Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21

(40) Q1FY17

FY18 FY19 FY20

(20) FY17

FY22E FY23E FY24E

FY21A

Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q1FY19 Q2FY19 Q4FY19 Q1FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q3FY19 Q2FY20 Q4FY18 (60) (40) (80) (60) (100)

Source: Company, ICICI Direct Research Source: Company, ICICI Direct Research

ICICI Securities | Retail Research 5 Result Update | Titan Company ICICI Direct Research

Exhibit 7: EBITDA margin trend (post Ind-AS 116)

20 12.7 13.0 12.8 15 11.8 10.610.2 10.8 10.3 10.1 10.811.1 11.2 11.6 11.7 11.110.9 9.7 9.2 8.0 11.6 10 3.9 5

% 6.9 0

-5

FY18 FY19 FY20

FY22E FY23E FY24E

-10 FY21A

Q2FY18 Q3FY18 Q4FY18 Q3FY19 Q4FY19 Q1FY20 Q3FY20 Q4FY20 Q1FY21 Q4FY21 Q1FY22 Q1FY19 Q2FY19 Q2FY20 Q1FY21 Q3FY21 -15 (12.8)

EBITDA Margin

Source: Company, ICICI Direct Research. Exhibit 8: Net profit trend

3,500 3,129

3,000 2,717

2,500 1,942 1,942

2,000 1,501

1,404 1,404 1,130 1,130

| crore | 1,500

973 973

711 711

675 675

568 568 530 530

1,000 475

411 411

365 365

348 348

343 343

329 329

314 314

306 306

303 303

282 282

278 278

239 239

233 233

226 226

187 187

179 179

174 174

166 166

151 151

146 146 121 121

500 18 -

(500)

FY17 FY18 FY20 FY16 FY19

FY23E FY24E FY22E

FY21A

Q1FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q4FY17 Q2FY18 Q3FY18 Q1FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q4FY20 Q2FY21 Q3FY21 Q1FY22 Q2FY16 Q3FY17 Q1FY18 Q4FY18 Q2FY19 Q3FY20 Q1FY21 Q4FY21 (294)

Source: Company, ICICI Direct Research.

Exhibit 9: Valuation

Source: Company, ICICI Direct Research

ICICI Securities | Retail Research 6 Result Update | Titan Company ICICI Direct Research

Financial Summary

Exhibit 10: Profit and loss statement | crore Exhibit 11: Cash flow statement | crore (Year-end March) FY21A FY22E FY23E FY24E (Year-end March) FY21A FY22E FY23E FY24E Total operating Income 21,644.0 25,804.4 31,865.0 37,814.5 PAT 973.0 1,941.6 2,716.6 3,129.1 Growth (%) 2.8 19.2 23.5 18.7 Add: Depreciation 375.0 389.2 423.8 463.0 Raw Material Expenses 16,414.0 19,146.8 23,261.4 27,604.6 Add: Finance Cost 203.0 195.6 208.2 220.7 Employee Expenses 1,065.0 1,212.8 1,465.8 1,701.7 (Inc)/dec in Current Assets -230.6 -1,487.6 -2,765.5 -2,714.8 Mfg, Admin & selling Exps 2,441.0 2,459.5 3,098.5 3,682.4 Inc/(dec) in CL and Provisions 2,616.4 455.0 1,339.4 1,135.5 Total Operating Expenditure 19,920.0 22,819.2 27,825.8 32,988.6 Others 215.1 0.0 0.0 0.0 EBITDA 1,724.0 2,985.2 4,039.2 4,825.9 CF from operating activities 4,151.8 1,493.8 1,922.5 2,233.6 Growth (%) -30.1 73.2 35.3 19.5 (Inc)/dec in Investments -2,666.1 142.4 -54.1 -82.8 Depreciation 375.0 389.2 423.8 463.0 (Inc)/dec in Fixed Assets -111.9 -315.0 -320.0 -310.0 Interest 203.0 195.6 208.2 220.7 (Inc)/dec in CWIP -13.8 9.6 6.7 4.7 Other Income 186.0 195.3 224.6 265.0 Others 40.6 -50.0 -50.0 0.0 PBT 1,332.0 2,595.7 3,631.9 4,407.2 CF from investing activities -2,751.1 -213.0 -417.4 -388.1 Exceptional items* 0.0 0.0 0.0 0.0 Issue/(Buy back) of Equity 0.0 0.0 0.0 0.0 Total Tax 353.0 654.1 915.2 1,278.1 Inc/(dec) in loan funds -557.9 -127.9 -3.7 -3.3 Share of JV/Minority int -6.0 0.0 0.0 0.0 Less: Finance Cost -203.0 -195.6 -208.2 -220.7 PAT 973.0 1,941.6 2,716.6 3,129.1 Dividend Paid -355.1 -355.1 -543.3 -782.3 Growth (%) -35.2 99.5 39.9 15.2 Others -106.6 -174.2 -183.3 -183.7 EPS (|) 11.0 21.9 30.6 35.2 CF from financing activities -1,222.6 -852.8 -938.5 -1,190.0 Source: Company, ICICI Direct Research Net Cash flow 178.1 428.0 566.6 655.4 Opening Cash 381.2 559.3 987.2 1,553.8 Closing Cash 559.3 987.2 1,553.8 2,209.3 Source: Company, ICICI Direct Research

Exhibit 12: Balance Sheet | crore Exhibit 13: Key ratios (Year-end March) FY21A FY22E FY23E FY24E (Year-end March) FY21A FY22E FY23E FY24E Liabilities Per share data (|) Equity Capital 88.8 88.8 88.8 88.8 EPS 11.0 21.9 30.6 35.2 Reserve and Surplus 7,407.5 8,994.0 11,167.3 13,514.1 Cash EPS 15.3 26.3 35.4 40.5 Total Shareholders funds 7,496.3 9,082.7 11,256.0 13,602.9 BV 84.4 102.3 126.8 153.2 Total Debt 165.0 37.1 33.4 30.0 DPS 4.0 4.0 6.1 8.8 Deferred Tax Liability (97.0) (97.0) (97.0) (88.2) Cash Per Share 6.3 11.1 17.5 24.9 Other long term liabilities 1,261.0 1,261.1 1,261.1 1,261.2 Operating Ratios Total Liabilities 8,825.3 10,283.9 12,453.5 14,805.9 EBITDA Margin (%) 8.0 11.6 12.7 12.8 Assets PBT Margin (%) 6.2 10.1 11.4 11.7 Gross Block 2,128.0 2,443.0 2,763.0 3,073.0 PAT Margin (%) 4.5 7.5 8.5 8.3 Less: Accu Depreciation 669.0 884.0 1,124.4 1,394.8 Inventory days 141.8 135.0 135.0 135.0 Net Block 1,459.0 1,559.0 1,638.6 1,678.2 Debtor days 6.2 6.0 6.0 6.0 Capital WIP 32.0 22.4 15.7 11.0 Creditor days 84.3 78.0 78.0 76.0 Goodwill on Consolidation 123.0 123.0 123.0 123.0 Return Ratios (%) Total Fixed Assets 1,614.0 1,704.4 1,777.3 1,812.2 RoE 13.0 21.4 24.1 23.0 Investments 2,848.0 2,705.6 2,759.7 2,842.5 RoCE 17.6 28.5 32.0 32.0 Inventory 8,408.0 9,544.1 11,785.7 13,986.2 RoIC 31.7 47.8 51.8 40.5 Debtors 366.0 424.2 523.8 621.6 Valuation Ratios (x) Loans and Advances 1,513.0 1,806.3 2,230.5 2,647.0 P/E 164.2 82.3 58.8 51.1 Other Current Assets - - - - EV / EBITDA 90.8 52.3 38.5 32.7 Cash 559.3 987.2 1,553.8 2,209.3 EV / Net Sales 7.2 6.1 4.9 4.2 Total Current Assets 10,846.3 12,761.8 16,093.9 19,464.1 Market Cap / Sales 7.4 6.2 5.0 4.2 Creditors 4,999.0 5,514.4 6,809.5 7,873.7 Price to Book Value 21.3 17.6 14.2 11.7 Other Current Liabilities 2,336.0 2,322.4 2,358.0 2,382.3 Solvency Ratios Provisions 186.0 139.2 147.9 194.9 Debt/EBITDA 0.1 0.0 0.0 0.0 Total Current Liabilities 7,521.0 7,976.0 9,315.4 10,450.9 Debt / Equity 0.0 0.0 0.0 0.0 Net Current Assets 3,325.3 4,785.8 6,778.5 9,013.2 Current Ratio 1.4 1.6 1.7 1.9 Others Non Current Assets 1,038.0 1,088.0 1,138.0 1,138.0 Quick Ratio 0.3 0.4 0.5 0.5

Application of Funds 8,825.3 10,283.9 12,453.5 14,805.9 Source: Company, ICICI Direct Research

Source: Company, ICICI Direct Research

ICICI Securities | Retail Research 7 Result Update | Titan Company ICICI Direct Research

Exhibit 14: ICICI Direct coverage universe (Retail) CMP M Cap EV/Sales (x) P/E (x) EV/EBITDA (x) RoCE (%) RoE (%) Sector / Company (|) TP(|) Rating (| Cr) FY20 FY21E FY22E FY23E FY20 FY21E FY22E FY23E FY20 FY21E FY22E FY23E FY20 FY21E FY22E FY23E FY20 FY21E FY22E FY23E Trent 929 1,060 Buy 32,632 9.2 12.4 8.3 5.8 266.4 - 253.1 102.9 59.1 187.6 57.7 38.3 15.9 4.3 15.0 22.5 5.1 -6.3 5.4 12.0 ABFRL 214 265 Buy 18,169 2.3 4.2 2.8 2.1 - - - 66.1 16.4 - 22.4 13.2 10.2 -8.9 3.2 17.8 -15.3 -25.5 -2.9 10.2 TCNS Clothing 591 700 Buy 3,689 3.0 5.4 3.2 2.4 67.5 - 53.9 29.6 42.6 - 32.1 17.9 10.6 -10.8 13.1 20.0 7.9 -8.1 9.7 14.9 Shoppers Stop 245 275 Buy 2,768 1.3 2.7 1.9 1.3 - - - 35.7 7.8 87.3 16.1 6.8 4.7 -14.8 -4.7 13.0 -103.1 -151.5 -477.9 71.1 Bata 1,652 1,925 Buy 21,240 6.3 11.3 6.9 5.2 62.1 - 77.4 39.5 23.3 119.3 28.2 18.3 28.2 -5.9 20.4 32.7 17.2 -5.1 13.5 23.0 Titan Company 1,800 2,110 Buy 1,59,801 7.6 7.2 6.1 4.9 106.4 164.2 82.3 58.8 64.9 90.8 52.3 38.5 28.7 17.6 28.5 32.0 22.5 13.0 21.4 24.1 Relaxo Footwear 1,165 1,330 Buy 28,904 12.0 12.1 10.2 8.4 127.8 99.3 90.0 69.5 70.7 57.7 53.5 42.9 23.9 26.0 25.1 28.0 17.8 18.5 18.0 20.3 TTK Prestige 8,667 10,675 Buy 12,021 6.1 5.8 5.0 4.3 69.0 52.5 45.8 37.9 48.2 38.6 32.4 27.0 17.1 18.6 20.0 21.5 14.1 16.1 16.5 17.7 32,760 34,800 Hold 36,540 11.3 11.7 9.6 7.8 97.4 98.2 75.0 53.0 62.6 62.7 49.2 35.7 55.7 52.4 55.4 65.0 41.9 38.5 42.8 50.0 Avenue Supermarts 3,592 3,720 Hold 2,32,000 8.6 8.9 6.7 4.8 166.3 196.8 135.9 85.1 100.1 122.7 84.0 54.3 16.4 12.5 15.8 21.2 11.7 9.0 11.6 15.6 V-Mart 3,879 4,100 Buy 7,636 4.2 6.7 4.1 2.7 142.8 NA 194.9 65.9 32.9 55.0 33.8 20.8 27.0 6.0 13.6 23.6 10.7 -0.8 4.5 11.9

Source: Company, ICICI Direct Research

ICICI Securities | Retail Research 8 Result Update | Titan Company ICICI Direct Research

RATING RATIONALE ICICI Direct endeavors to provide objective opinions and recommendations. ICICI Direct assigns ratings to its stocks according -to their notional target price vs. current market price and then categorizes them as Buy, Hold, Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock

Buy: >15% Hold: -5% to 15%; Reduce: -15% to -5%; Sell: <-15%

Pankaj Pandey Head – Research [email protected]

ICICI Direct Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) – 400 093 [email protected]

ICICI Securities | Retail Research 9 Result Update | Titan Company ICICI Direct Research

ANALYST CERTIFICATION

I/We, Bharat Chhoda, MBA, Cheragh Sidhwa MBA, Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. It is also confirmed that above mentioned Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months and do not serve as an officer, director or employee of the companies mentioned in the report.

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ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities and its analysts, persons reporting to analysts and their relatives are generally prohibited from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.

Recommendation in reports based on technical and derivative analysis centre on studying charts of a stock's price movement, outstanding positions, trading volume etc. as opposed to focusing on a company's fundamentals and, as such, may not match with the recommendation in fundamental reports. Investors may visit icicidirect.com to view the Fundamental and Technical Research Reports.

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