Source: The Hitavada      Date: 12 Mar 2017 09:33:23

Top takeaways from Q3FY17: Topline grew by 14% yoy and beat our/street estimates of 8%/9% yoy growth on strong festival season growth; EBITDA grew 21% and met our expectations; EBITDA margins rose 50 bps yoy to 9.6% on lower-than-expected other expenses.

Upgrade to BUY: We have revised our estimates for FY17/18 by 2%/-1% and rolled forward our target price to FY19. We expect Titan to see strong growth in Q4 due to low base (Jewellers strike last year), subdued unorganised competition and planned studded activation. We also expect Titan to show strong growth in medium term led by growth revival in Jewellery industry, market share gains, new collections, increasing share of exchanged gold, strong GHS collections and margin expansion. We value the stock at 34x our FY19 earnings at Rs 450 (Rs 400 earlier) and upgrade
the stock to BUY.