Based on Bloomberg data, the Titan stock trades at a steep 57 times estimated earnings for the next financial year. However, primary sales growth was lower last quarter. According to IIFL Institutional Equities, margin expansion in jewellery (120 basis points) and watch (60 basis points) segments should result in 24% profit after tax growth in the December quarter. According to the brokerage, strength in jewellery margins along with continued growth driven by market share gains in fiscal 2019 remain upside risks to its 29% FY17-20 earnings per share compound annual growth rate. Even so, investors seem to be capturing a good portion of the optimism in the share price limiting generous upsides anytime soon.

Source: Mint January 08, 2018 02:03 UTC