titan company - result update-oct-15-edel - myirisbreport.myiris.com/es1/titindus_20151030.pdf ·...
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Edelweiss Research is also available on www.edelresearch.com, Bloomberg EDEL <GO>, Thomson First Call, Reuters and Factset. Edelweiss Securities Limited
Titan Company’s (Titan) Q2FY16 revenue (down 25.6% YoY on very high base of 54% YoY growth) came in line, while PAT (dipped 39.4% YoY) came slightly below expectations. Key positives: (i) maintained gross margin in jewellery business despite lower studded share (24% versus 35% in Q2FY15) and cut in making charges (overall gross margin expanded 150bps YoY); (ii) 16 quarter high margin in watches at 15.3% led by better cost management and postponement of A&P expenses; and (iii) 14% YoY spurt in Helios (premium watches) format (highest in 5 quarters) and 8% YoY growth in large stores signaling premiumisation in watches. Key negative was 314bps dip in jewellery EBIT margin led by lower operating leverage and fall in studded share due to advancement of promotions in studded jewellery to Q1FY16. H2FY16 will see significant growth led by lower base (jewellery sales dipped 2.2% YoY), GHS redemption and encouraging festive season. Maintain ‘BUY’.
Lower growth impacts margin; online hurting watches and eyewear
Absence of GHS in Q2FY16 led to 32.4% YoY dip in jewellery sales. Lower studded share
due to early promotions of studded jewellery in Q1FY16 also impacted margin. Soft LTL
growth of 1% YoY in Titan Eye+ and dip of 4%/9% YoY in World of Titan/ Fastrack
indicates pressure from online players. Precision engineering dipped 10% YoY due to
higher base.
Q2FY16 conference call: Key takeaways
Dusshera in October elicited good demand (20% plus growth in total retail sales). Titan
improved margin in studded jewellery and maintained it in gold jewellery despite
reduction in making charges. Consumer surveys indicate strong brand preference for
Tanishq due to increased affordability and competitiveness post the cut in making
charges. Hedging benefit was negligible in Q2FY16, but will come in Q3 and Q4FY16,
thereby aiding margins.
Outlook and valuations: Brighter H2FY16; maintain ‘BUY’
Long‐term growth potential remains intact with brand equity getting strengthened in
both jewellery and watches. The stock is currently trading at 29.2x FY17E. We
recommend ‘BUY/SP’ on the stock with target price of INR395.
RESULT UPDATE
TITAN COMPANYH1 marred by GHS; stellar H2 envisaged
EDELWEISS 4D RATINGS
Absolute Rating BUY
Rating Relative to Sector Performer
Risk Rating Relative to Sector Low
Sector Relative to Market Overweight
MARKET DATA (R: TITN.BO, B: TTAN IN)
CMP : INR 350
Target Price : INR 395
52‐week range (INR) : 448 / 303
Share in issue (mn) : 887.8
M cap (INR bn/USD mn) : 311 / 4,791
Avg. Daily Vol.BSE/NSE(‘000) : 1,076.3 SHARE HOLDING PATTERN (%)
Current Q1FY16 Q4FY15
Promoters *
53.1 53.1 53.1
MF's, FI's & BK’s 6.1 4.7 4.4
FII's 19.2 20.1 20.3
Others 21.7 22.2 22.2
* Promoters pledged shares (% of share in issue)
: NIL
PRICE PERFORMANCE (%)
Stock Nifty
EW Retail Index
1 month 6.1 5.0 2.7
3 months 1.4 (3.1) 3.9
12 months (12.9) 3.1 18.6
Abneesh Roy +91 22 6620 3141
Pooja Lath +91 22 6620 3075
Tanmay Sharma +91 22 4040 7586
India Equity Research| Retail
October 30, 2015
Financials (INR mn)
Year to Marc Q2FY16 Q2FY15 % change Q1FY16 % change FY15 FY16E FY17E
Net rev. 26,735 35,931 (25.6) 27,086 (1.3) 119,134 123,874 143,740
EBITDA 2,028 3,331 (39.1) 2,227 (9.0) 11,484 11,644 14,518
Adj. Profit 1,454 2,400 (39.4) 1,511 (3.8) 8,163 8,591 10,627
EPS (INR) 1.6 2.7 1.7 9.2 9.7 12.0
P/E (x) 38.0 36.1 29.2
EV/EBITDA 26.9 26.2 21.0
ROAE (%) 29.1 25.5 26.7
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Table 1: Trends at a glance
Table 2: LTL growth trends across formats
Source: Company, Edelweiss research
Titan Q2FY16 result concall | Key takeaways
Demand: Sentiments have not changed and the scenario remains same. Q2FY16 saw good
initial pick up but there was a significant slowdown in all the business in the September
month. This could have been due to delay in the festive season. The festive season in
October has seen good response. Dusshera saw good demand environment (20+% growth
in the total retail sales). The company is also aiming for similar growth in jewellery in
Q3FY16.
Outlook: Growth will be back from Q3FY16 as base will become favourable which will help
in bringing back the operating leverage.
Jewellery: Q2FY15 saw 54% of the contribution coming from the GHS scheme. Since
diamond studded promotion were advanced to June, 2015 the studded share declined YoY
in Q2FY16 (in FY15 it was done in Q2FY16). The company has however maintained its
gross margins in this segment both on studded and plain gold jewellery. The large decline
in the profit is largely because of the decline in the sales. Grammage declined by 10% YoY.
To push the wedding jewellery the company has launched new collections and is also
offering bundling offers which led to some reduction in the wedding jewellery (apart from
the general reduction of the making charges).
Q2FY16 Q1FY16 Q4FY15 Q3FY15 Q2FY15 Q1FY15 Q4FY14 Q3FY14 Q2FY14 Q1FY14 Q4FY13
Watches & clocks sales growth (% YoY) 4.4 9.1 1.8 (1.9) 19.2 11.4 19.5 6.6 (6.9) 10.6 1.5
Watches volume growth (% YoY) ‐ (4.0) (6.0) (4.0) 9.0 9.0 11.0 (10.0) (22.0) 3.0 (10.0)
Jewellery sales growth (% YoY) (32.4) (10.9) (15.3) 11.2 64.8 (10.1) 3.1 (16.1) 3.1 45.7 16.3
Jewellery gramage growth (% YoY) (10.0) (10.0) (11.0) 25.0 75.0 (24.0) (2.0) (21.0) (4.0) (67.0) 7.0
Gold price change (% YoY) (7.0) (6.0) (5.0) (6.0) (4.0) 7.0 (5.5) (9.9) (5.3) (7.0) 8.1
Eyewear sales growth (% YoY) 15.4 19.7 NA NA NA NA NA NA NA NA NA
Others sales growth (% YoY) (10.1) 36.3 NA NA NA NA NA NA NA NA NA
LTL sales growth (%)
World of Titan (4.0) ‐ 5.0 (3.0) 10.0 2.0 8.0 (5.0) (11.0) (1.0) (2.0)
Tanishq (40.0) (12.0) (25.0) (8.0) 68.0 (13.0) 6.0 (15.0) (7.0) 29.0 8.0
Goldplus (28.0) (24.0) (4.0) 30.0 81.0 (24.0) (18.0) (30.0) (21.0) 37.0 ‐
Helios 14.0 4.0 3.0 4.0 9.0 20.0 5.0 10.0 (1.0) 5.0 12.0
Fastrack (9.0) (4.0) (4.0) (6.0) 1.0 9.0 ‐ (9.0) 1.0 8.0 15.0
LFS ‐ Watches 8.0 ‐ 8.0 (5.0) 1.0 5.0 1.0 7.0 (5.0) (2.0) 4.0
Titan Eye+ 1.0 13.0 ‐ 9.0 19.0 13.0 21.0 2.0 25.0 21.0 40.0
PBIT margins %
Watches & clocks 15.3 9.9 9.6 9.7 12.6 10.1 12.0 10.4 9.8 9.6 10.9
Jewellery 6.0 8.7 12.7 9.6 9.2 9.4 10.6 9.5 12.4 7.8 11.9
Eyewear 4.6 1.8 10.8 NA NA 15.1 NA NA NA NA NA
Others (9.7) (22.8) (14.4) NA NA (27.9) NA NA NA NA NA
Like to Like growth (% YoY) Q2FY16 Q1FY16 Q4FY15 Q3FY15 Q2FY15 Q1FY15 Q4FY14 Q3FY14 Q2FY14 Q1FY14 Q4FY13
World of Titan (4.0) ‐ 5.0 (3.0) 10.0 2.0 8.0 (5.0) (11.0) (1.0) (2.0)
Tanishq (40.0) (12.0) (25.0) (8.0) 68.0 (13.0) 6.0 (15.0) (7.0) 29.0 8.0
Goldplus (28.0) (24.0) (4.0) 30.0 81.0 (24.0) (18.0) (30.0) (21.0) 37.0 ‐
Helios 14.0 4.0 3.0 4.0 9.0 20.0 5.0 10.0 (1.0) 5.0 12.0
Fastrack (9.0) (4.0) (4.0) (6.0) 1.0 9.0 ‐ (9.0) 1.0 8.0 15.0
LFS ‐ Watches 8.0 ‐ 8.0 (5.0) 1.0 5.0 1.0 7.0 (5.0) (2.0) 4.0
Titan Eye+ 1.0 13.0 ‐ 9.0 19.0 13.0 21.0 2.0 25.0 21.0 40.0
No. of negative like to like growth 4.0 3.0 3.0 4.0 ‐ 2.0 1.0 4.0 5.0 2.0 1.0
Titan Company
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Jewellery margins: The gross margin as a % has not dropped despite the drop in the
making charges and fall in studded share (got balanced by absence of GHS scheme which
is lower margin); margins have improved in the studded jewellery compared to H1FY15
and margins in the gold jewellery has been maintained despite making charges reduction).
This was led by sale of good mix of products. Dip in the margins is due to lower operating
leverage. The margin trajectory will improve from Q3FY15 and onwards. The company
aspires to clock more than 9% margin.
GHS scheme: The bulk of redemption will be done in Q4FY16 but the company is pushing
the customer for redemption for Q3FY15. The sales from this expected to be ~INR4.5bn. The
company is enrolling about INR90‐100mn worth of customer per month (these are
incremental / new customer entering the scheme; the company was doing INR250mn per
month earlier) with average size of more than INR5000. Due to higher ticket price some of
the lower middle class and middle class customer will not be able to join in the current
scheme. The limit of the company is INR7.7bn as of now which is expected to be reached in
January 2016.
Studded share: 24% in Q2FY16. Studded share is down due to advancement of promotions
from Q2 to Q1FY16 (generally the promotions on studded jewellery is done in Q2).
Hedging: The benefit booked on hedging in Q2FY16 was very less, the bulk of it will come in
Q3 and Q4FY16 starting from November. The company booked INR300mn of benefit in
Q1FY16 which also led to better margins in Q1FY16. Q1FY16 was high because of the carry
forward from FY15. When company does gold on spot it earns premium which is accounted
only at the time of sales which happens with a lag. Thus the split of spot purchase will
determine the hedging gains.
Store expansion: Added 7 stores in Q2FY16. The expansion strategy has not changed but the
company is very particular about the size and the location of the stores. The opportunity in
terms of the number of towns remains. However due to slowing down of capital flow the
rate of expansion of franchise has slowed. The lowering of the making charges has made
Tanishq a much more competitive brand. L1 stores has challenges like staff management,
inventory risk, lower connect with the customers, higher fixed costs which are difficult to
manage especially in the small town. The company has taken a balanced view in terms of L1,
L2 and L3 stores. Profitability of L3 stores is reasonable. The company gets 35% of its sales
from L1 stores (90% of the costs are fixed in L1 stores).
Watches: LTL growth was subdued. The company however has seen a surge in the ticket
price and has seen increase in the repeat customers. Helios (for premium watches) however
has seen good LTL growth of 14% YoY. Large format stores has also done well for the
company. The company has done better in the smaller town compared to the Top 8 town.
Exports have done better for the company in Q2FY16. The volume growth was flattish.
Margin improvement was led by lower costs and lower ad expenses due to shifting of the
festive season. The performance in the overseas market was much better than the
domestic market. Lot of the growth in H1FY16 has come from exports (growth trajectory
has been coming down QoQ in watches with September being the least). The company has
launched many new collections and campaigns lined up in this segment. The new brand SF
has met with encouraging response.
Eyewear: LTL growth has seen a sharp slowdown in this business (1% YoY).
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Precision engineering: Declined because in Q2FY15 there was a bulk order in the machine
building segment which was not there in Q2FY16. The demerger of this business is expected
to complete by FY16 end.
Purchase: spot ratio: 50:50 in Q2FY16. Thus 50% of the gold is on gold on lease while rest is
bought on spot.
Shopping habits: Habits are changing from EBOs to MBOs to online.
Cash: The company is marginally cash positive on a net level.
Pan card: The status on the pan card issue remains the same as it was earlier. There is no
change in the status.
Tax rate: FY16 at 23%.
Diamond prices: Are not as familiar to consumers as gold prices are.
Tanishq preference: The company meets more than 1000 people across the country to
understand the brand and with every metric the score of Tanishq has been number 1 which
is helped by better communications and lowering of the making charges. As per the
feedback from the staff of Tanishq, it has become very easy to do business and with
lowering of the making charges making the brand very competitive.
EDEL CHANNEL CHECKS | Titan going all guns blazing to beat slowdown: Showering customers with discounts to ring in festive cheer
Demand continues to remain weak and companies are trying to beat the slowdown by
discounting and promotions.
Competitive intensity remains high not only in consumer staples, but discretionaries
too have inched up discounting significantly.
Even companies like Asian Paints are offering discounts on select range of products in
October (15% off each on Aquadur Wood Finishes range and Royale Enamel and 25%
off on Nilaya).
Titan is not far behind and has inched up promotions, advertising and new launches
significantly signaling not only subdued demand, but also proactiviness on the
company's part.
Jewellery:
The company has hired Deepika Padukone as the brand ambassador and is running a TV
advertisement.
Titan is offering 25% off on making charges on some of its jewellery (bangles and
pendants; implied making charges on these jewellery is in the range of 16‐18% on
which there is 25% off).
It is also offering 20% off on select diamond jewellery.
It has also launched new collections in this segment (Farah Khan Collection, Zuhur
studded collection, Palette rings, New Mia collection, Divyam traditional diamond
collection, specific collection for specific regions and communities like Punjabi, Gujarati,
Maharashtrian, Bengali, Marwadi etc).
Titan Company
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Watches:
Titan recently launched SF collection under Sonata brand (a sportwear watch like Casio)
and is advertising it on sports channels.
The product is reasonably priced in the INR1000‐2000 range (Casio watches start from
INR5000) and are digital watches.
On some Titan and Fastrack watches it is offering 40% and 50% off, respectively.
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Eyewear and other accessories:
The company has hired actress Kangna Ranaut to advertise its eyewear collection.
It has also launched a new collection to bring in excitement among consumers.
In accessories, Titan is offering ~50% off on select bags, wallets and belts.
Encouraging online platform
To encourage purchase from the online platform, Titan is giving INR1250 off on the first
logged in purchase after registration.
Giving 10% cash back for purchases through Mobikwik and 5% cashback on purchases
through ICICI and HDFC bank cards.
The company is also encouraging purchase of jewellery through the online channel and
giving free shipping and guarantee of purity.
Titan Company
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Other developments
TBZ tie up with Snapdeal: TBZ has tied up with the ecommerce website Snapdeal and thus
has marked entry in to the ecommerce space. The company will be selling its collection of
diamond jewellery and coins on the site. As per Snapdeal SVP (Partnerships & Strategic
Initiatives) Tony Navin, “Jewellery is one of the fastest growing categories on Snapdeal. With
the launch of TBZ's exclusive collection on Snapdeal, we are excited to bring our customers a
vast array of choices from a certified and reputed jewellery design brand and expand our
designer jewellery and accessory portfolio”.
TBZ enters into franchise agreement: TBZ has signed its first Franchise Agreement for a TBZ‐
The Original store in Dhanbad, Jharkhand. This franchisee based model will help the
company’s retail expansion plans and vision to increase its retail space from current 93.000
sq ft to around 1.50,000 sq ft in the next two to three years. Since the inventory is on the
book of franchise this model will help in improvement of ROE and ROCE.
Titan analyst meet FY15 | Key takeaways
Overall Indian consumption story: The overall long‐term environment remains exciting
considering the Indian consumption story. The 3 aspects of demographic dividend, rising
incomes of Indian consumers and growing aspirations excite the company.
Category participation: The company participates in categories that are unorganised,
under‐served and under‐penetrated. Titan always tries to make pro consumer choices (eg.
In the watch business, the company moved from mechanical watches to quartz watches).
Being in the unorganized sector has its pros (large opportunity in branded space, improved
quality of competition and category transformation) and cons (non level playing field for
organized players and regulations). Titan will enter categories that cater to personal
lifestyles, involve branding and design and which have national play.
Watch market: Titan achieved leadership in the watches segment in 5 years of entry. Of the
total 52mn watches sold in India, only 16mn watches can be accounted for; balance are in
the grey market.
New categories: Titan will continue to explore unorganized segments in the market.
Failures of Titan in the past: Titan has learned from its failure. It failed in the jewellery
business for the first 6‐7 years, the Europe, the jewellery foray in USA and the first version
of Raga watches.
Innovations: Titan is promoting a culture of innovation across products, business models,
brands, customer touch points and customer experience. The company promotes
innovation in the organization through initiatives like Titan Innovation Bazaar, Innovation
School of Management etc. Eg of innovations are Edge watches, diamond sorting machines
(first time in the world). In its business model also Titan has chosen the end‐to‐end business
model (vertically integrated), but is open to change. Eg getting jewellery manufactures
outside but it keeps a close watch on the process.
Service network: Titan has the largest network of after sale service for watches in India. This
is proving to be an advantage as foreign brands entering India are using the network built
by Titan.
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Watch ranking: Titan is the 5th largest watch maker in the world. Ranking from 1 to 6 is as
follows: Swatch, Casio, Citizen, Timex, Titan, Seiko.
Factors affecting top line growth: Top line growth of the company is impacted by consumer
sentiments, share of wallet, digital enablement and technology.
Steps taken to revive consumer sentiments: Though recent data indicates that consumer
sentiments are at all time high, it has not reflected on ground. But it may come with a lag.
To revive demand, Titan is taking steps like increasing A&P expenditure significantly, store
renovations (renovates store witnesses good growth) and expansion, expanding in the
middle India (200+ towns), sharpening focus on richer product mix (consumers are ready
to pay the price for a good product), improving the in‐store experience and leveraging the
customer loyalty programme to enhance ticket size.
Share of wallet not share of voice: Titan has shifted focus to capturing share of wallet of
consumers. Today consumers are involved in a phenomenon called snacking (which means
consumers buying small ticket items but buying them many times through online).
Considering this, Titan will keep launching new and exciting products, expanding the
product portfolio, exploring new product categories and growing newly launched
businesses like accessories and fragrances.
Digital: Titan has set up a separate digital function in the company. It is planning to build a
business model which has digital inbuilt in all its businesses. For this Titan has aggressive
plans in the e‐commerce space, big data analytics will be helped by the 8mn+ consumer
database available through Unified Loyalty Program and advertising through the social and
digital mediums.
Technology: Tata group has appointed a technology officer who will work with the entire
group. Titan is exploring technology play in the wearable and watches segment and infusing
smart technology in personal wear products. It has about 1,200 owned outlets which gives
it a big opportunity for partnering with technology companies like Apple and Samsung.
Capex: Capex is expected to be in the range of INR1.5‐2.0bn for FY16. Titan has done
significant capex in manufacturing (started the watch factory in Coimbatore in FY15).
Similarly capex will be done in building manufacturing capabilities in FY16 (eyewear ) and on
building new corporate office. Corporate office is expected to be finished by the end of CY16.
Inorganic growth: Titan is actively exploring opportunities in the lifestyle space. The
company is not actively seeking inorganic growth, but is open to opportunities which are
complementary. It will not acquire for scale but will acquire for skill (for acquiring
capability).
Retail expansion: Titan will be opting for more of the asset light model by adding more
franchisees.
Dividend payout: Payout expected to be in the 25‐30% range.
Ecommerce: Walkins at internet space were significantly higher than those in the physical
stores in Q1FY16. Because of the very high number of store network, Titan will benefit as
it can go Omni Channel.
Titan Company
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Factors looked at before expansion in Middle India: The company looks at the size of the
jewellery market before entering any city – if the market is INR2‐3bn, Titan looks to garner
revenues of INR250mn in the first year of operation, looks in to the prevailing making
charges of other players, overall retailing development in the city (eg if there is a Levi’s
tore, Croma store etc) and also gauge pattern on the basis of the average ticket price of
the watches sold.
JEWELLERY
Aim: Tanishq aims to become an icon in 2020 from a leader in 2015.
Industry size: The domestic jewellery market size is INR2,500bn. Out of this gold is
INR2,100bn (Titan has 3% share) while diamond is INR400bn (Titan has 7% share).
Occasion‐wise size: Wedding forms INR1,500bn of the overall size (Titan has about 1%
share in this), occasion wear forms INR300bn of the total size (Titan has 3% share) while
daily wear is INR700bn (Titan’s share 8%). Titan’s overall share in the market is 4%.
Customer profile and segmentation: Customer profile in the jewellery space can be divided
into 3 types: Adornment (the upper middle class, service class and professionals with
average bill size of INR75000), Savings (middle and lower middle class, service class with
average bill size of INR100000) and Status (Upper middle and upper class with average boll
size of INR150000).
Titan position: Titan already has a big presence in the adornment segment but now it will
focus on the status segment where its presence is low. It will not be a big player in the
savings segment and will only participate in the same. Eg states like Chennai, parts of
Maharashtra, Orissa, Kerala and West Bengal are characterized by the savings segment,
while Delhi, NCR, Gujarat and Mumbai, part of Hindi belt are characterized by the status
segment (diamond share is high in this region).
Competition: Different regions have different types of customers. Hence, if a regional player
becomes a pan India level player, that does not mean he is fighting Titan. The competition is
catering to different segment.
Diamond share: As per a study, diamond jewellery has been increasing its share in
weddings: 1% of customers buy 40% of value.
Status segment: Status segment was impacted by the PAN card issue as it involves larger
ticket size. However the young generation is pushing to turn white. Also the phenomenon
like jewellery on sangeet, proposal rings etc is increasing which caters well to this segment.
Titan has been lagging in the status segment and had a smaller number of designs
compared to other players in this segments like PCJ, TBZ, regional players etc. Now Titan
will invest in building new designs. This may bring down inventory turns, but since
margins in the space are higher it will make up for it. Thus Titan will offer more choice in
this segment to consumers.
Making charges: Absence of the golden harvest scheme also helped the company bring
down making charges without impacting gross margins. This has led to improvement in the
competitive advantage but still Tanishq remains at a premium.
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Drivers: Sales growth for the company will be driven by the wedding seasons, high value
diamond jewellery, working women jewellery and store expansion. Titan will be investing
behind designs in wedding and high jewellery segments.
Fall in gold prices: During falling gold prices increase in demand (in terms of increase in the
volume growth) is lower than decrease in gold price.
International: Titan will be entering the GCC market within the next 5 years but it will be
NRI focused and not focus on the ethnic population.
Price cut in diamond jewellery: Titan will not be cutting prices in the diamond jewellery
segment and will continue to operate at a premium. The quality, testing and precision that
Titan offers is not offered by any other player and so it charges a premium.
VAT rate: Current VAT rate is 1%.
PAN card issue: The PAN card issue seems to be on the backburner as the government is
already grappling with many other issue. It does not anticipate the issue for atleast
another year now.
Ecommerce: Jewellery remains an important part of the ecommerce drive of the company.
Goldplus: Goldplus caters to the savings segment. Hence the rollout will depend on the
geography and the market. This segment has become highly competitive in South.
Franchise expansion: Expansion through franchise is taking a bit more time. More that
2/3rd sales of the company come from L1 and L2 stores while little less than 1/3rd sales are
from L3 stores. Adding L3 store becomes difficult as the gold price galls since all of them
are not hedged, PAN card issue and also cash flows are tough since it requires ~INR100‐
120mn to invest in a L3 store.
Average break even: it takes 3 year for a large company owned store to break even on retail
margin basis.
Market share: Titan believes that it has gained market share.
New experiments: Titan is experimenting with the hub and spoke model in which despite
a smaller size of the store it is able to show a large inventory of jewellery to consumers
with the help of technology.
Online: Titan is now looking at online as business opportunity and is not waiting for Tata to
start its group online site. However it believes that jewellery is not a multi brand category
and hence it will not be an anchor on any online site. It will have its own online platform.
WATCHES and ACCESSORIES BUSINESS
EBIT: FY15 the EBIT of the segment increased to INR2110mn but his was led by lower
advertising.
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Technology: The entry of the technology watches has bring excitement in the watch
category as a whole. This gives Titan an opportunity to foray into this space. Companies like
Tag Heur, Gucci have entered the technology space. Soon Titan will also be foraying into the
technology space. Titan believes that it will focus on the design in which technology will be
embedded and will not go for something like a mobile phone on hand. Titan is exploring
different options in this space – either entering with its own brand or entering through a
licensed or other retail brand.
Share of wallet going to other products: Watches are facing competition not only from the
competing brands but also from the other categories as well as the phenomenon called
snacking is increasing. Consumers are spending into categories like apparel, shoes and
gadgets; going for weekend entertainments (spend amount for which a watch can be
bought) and have access to new styles and options in different categories helped by internet.
Network: Titan has a service centre network of 685 outlets (in 267 towns), 11000 dealers in
India and 2200+ outlets (in 30 other countries).
Watch segment: Titan has a watch for every segment. It has also created sub brands like
Xylys, Zoop, Edge, Fastrack etc. Soon the company will be launching a sub‐brand to enter
the sports watch segment.
New stores: Titan will be launching 70 new stores (40 World of Titan and 30 Large Format
stores) for expansion in middle India. Ecommerce will also be expanded.
EYEWEAR
Online entry: Entry into the eyewear segment into the online space was unexpected as this
model requires retail space. These online players are going into physical format now eg
Lenskart.
Competition: Competition in this space is driven by the regional players and international
players are looking at acquisition. Players like Ray Ban, Oakley etc are also entering the lens
space.
Objective: Target to double the business in 3 years. Also aims to double volume of
sunglasses in 3 years (Titan Glares). The company will also be looking in the international
market like Srilanka, Dubai (will set up stores in these markets).
Manufacturing: Will be investing in manufacturing of frames, will create regional lens labs
in Mumbai, Delhi and Kolkata, will renovate stores, open 10 new company owned stores
and will also roll out new retail identity. Large part of retail expansion will be franchise led.
Technology: Will use technology to drive growth with initiatives like eye‐testing on mobile,
RX lenses with mirror finish, bifocal lens without the line/visible zone, anti fog etc.
Retail
12 Edelweiss Securities Limited
Outlook and valuations: Likely to improve in H2FY16; maintain ‘BUY’
We expect discretionary demand to recover from H2FY16 following lag with pick up in
staples demand. Titan stands to benefit from retail expansion (doubled retail space in
jewellery during FY11‐15 with addition of ~0.5mn sq ft), which remains on track despite
slowdown. The new stainless steel case plant at Coimbatore will allow better control over
watches margins.
We expect demand recovery also due to new version of GHS kicking in, pushing of lower‐
priced products in jewellery making Tanishq accessible to a larger consumer base, steady
shift in preference to organised jewellers from unorganised players and high studded share.
Also, the benefit of hedging will flow in H2FY16, which will aid margin. H2FY16 will see
significant growth led by lower base (jewellery sales dipped 2.2% YoY), GHS redemption and
encouraging festive season. We assign target multiple of 33x FY17E EPS to arrive at a target
price of INR395. We recommend ‘BUY/Sector Performer’ on the stock.
Chart 1: Jewellery margin dipped 314bps YoY Chart 2: Jewellery revenue declines 32.4% YoY
Chart 3: Watches margin increased 193bps YoY Chart 4: Watches revenue up 4.4% YoY
Source: Company, Edelweiss research
0.0
3.0
6.0
9.0
12.0
15.0
Q1FY14
Q2FY14
Q3FY14
Q4FY14
Q1FY15
Q2FY15
Q3FY15
Q4FY15
Q1FY16
Q2FY16
(%)
0.0
3.0
6.0
9.0
12.0
15.0
18.0
Q1FY14
Q2FY14
Q3FY14
Q4FY14
Q1FY15
Q2FY15
Q3FY15
Q4FY15
Q1FY16
Q2FY16
(%)
(44.0)
(22.0)
0.0
22.0
44.0
66.0
88.0
Q1FY14
Q2FY14
Q3FY14
Q4FY14
Q1FY15
Q2FY15
Q3FY15
Q4FY15
Q1FY16
Q2FY16
(%)
(15.0)
(7.5)
0.0
7.5
15.0
22.5
Q1FY14
Q2FY14
Q3FY14
Q4FY14
Q1FY15
Q2FY15
Q3FY15
Q4FY15
Q1FY16
Q2FY16
(%)
Titan Company
13 Edelweiss Securities Limited
Chart 5: Watches volumes flattish
Source: Company, Edelweiss research
Table 3: Segmental performance
Table 4: Growth across formats
Source: Company, Edelweiss research
(27.0)
(17.2)
(7.4)
2.4
12.2
22.0
Q1FY12
Q2FY12
Q3FY12
Q4FY12
Q1FY13
Q2FY13
Q3FY13
Q4FY13
Q1FY14
Q2FY14
Q3FY14
Q4FY14
Q1FY15
Q2FY15
Q3FY15
Q4FY15
Q1FY16
Q2FY16
(%)
% growth % growth
Titan (Year to March) Q2FY16 Q2FY15 Y‐o‐Y Q1FY16 Q‐o‐Q
Revenue
Watches & clocks 5,465 5,235 4.4 4,845 12.8
Jewellery 19,817 29,294 (32.4) 20,720 (4.4)
Eyewear 885 767 15.3 1,068 (17.1)
Others 586 652 (10.1) 469 25.1
Corporate unallocated 96 161 (40.6) 139 (31.3)
Total 26,849 36,109 (25.6) 27,241 (1.4)
PBIT
Watches & clocks 838 702 19.4 481 74.0
Jewellery 1,191 2,682 (55.6) 1,803 (33.9)
Eyewear 41 3 1,536.0 20 109.7
Others (57) (30) NM (107) NM
Total 2,013 3,356 (40.0) 2,197 (8.4)
PBIT margins
Watches & clocks 15.3 13.4 193 9.9 540
Jewellery 6.0 9.2 (314) 8.7 (269)
Eyewear 4.6 0.3 430 1.8 280
Others (9.7) (4.6) (512) (22.8) 1,311
Total 7.5 9.3 (180) 8.1 (57)
Sales value growth (% YoY) Like to Like growth (% YoY)
World of Titan (2.0) (4.0)
Tanishq (37.0) (40.0)
Goldplus (28.0) (28.0)
Helios 15.0 14.0
Fastrack (1.0) (9.0)
LFS ‐ Watches 5.0 8.0
Titan Eye+ 15.0 1.0
Retail
14 Edelweiss Securities Limited
Chart 6: 1 year forward PE band
Source: Edelweiss research
20
110
200
290
380
470
Oct‐09
Apr‐10
Oct‐10
Apr‐11
Oct‐11
Apr‐12
Oct‐12
Apr‐13
Oct‐13
Apr‐14
Oct‐14
Apr‐15
Oct‐15
(INR)
15x
20x
25x
30x
35x
40x
Titan Company
15 Edelweiss Securities Limited
Financial snapshot (INR mn) Year to March Q2FY16 Q2FY15 % change Q1FY16 % change YTD16 FY16E FY17E
Net revenues 26,735 35,931 (25.6) 27,086 (1.3) 53,821 123,874 143,740 Raw material costs 19,774 27,113 (27.1) 19,277 2.6 39,051 90,676 104,930
Ad spend 895 1,058 (15.4) 1,288 (30.5) 2,184 4,955 5,606
Employee expenses 1,800 1,639 9.8 1,756 2.5 3,556 6,813 7,474
Other expenses 2,238 2,790 (19.8) 2,537 (11.8) 4,775 9,786 11,212
EBITDA 2,028 3,331 (39.1) 2,227 (9.0) 4,255 11,644 14,518
Depreciation 240 199 20.5 228 5.0 468 915 912
EBIT 1,788 3,132 (42.9) 1,999 (10.6) 3,787 10,729 13,606
Other income 114 178 (36.0) 155 (26.6) 269 879 1,035
Interest 87 109 (19.9) 118 (26.4) 205 457 480
Profit before tax 1,815 3,201 (43.3) 2,036 (10.9) 3,851 11,151 14,161
Provision for taxes 361 801 (54.9) 526 (31.3) 887 2,565 3,540
Minority interest
Associate profit share (5) (6)
Reported net profit 1,454 2,400 (39.4) 1,511 (3.8) 2,965 8,591 10,627
Adjusted Profit 1,454 2,400 (39.4) 1,511 (3.8) 2,965 8,591 10,627
Diluted shares (mn) 888 888 888 888 888 888
Adjusted Diluted EPS 1.6 2.7 1.7 3.3 9.7 12.0
As % of net revenues
Raw material 74.0 75.5 71.2 72.6 73.2 73.0
Ad spend 3.3 2.9 4.8 4.1 4.0 3.9
Employee cost 6.7 4.6 6.5 6.6 5.5 5.2
Other expenses 8.4 7.8 9.4 8.9 7.9 7.8
Total expenses 92.4 90.7 91.8 92.1 90.6 89.9
EBITDA 7.6 9.3 8.2 7.9 9.4 10.1
PBT 6.8 8.9 7.5 7.2 9.0 9.9
Tax rate 19.9 25.0 25.8 23.0 23.0 25.0
Retail
16 Edelweiss Securities Limited
Company Description
Titan was incorporated in 1984 as a joint venture between the TATA Group and Tamil Nadu
Industrial Development Corporation (TIDCO), a Government of Tamil Nadu undertaking. The
company manufactures and markets quartz watches since 1987 and is now India’s leading
watch manufacturer and retailer. Gradually, jewellery, precision engineering, eyewear,
accessories, and licensed products were added to the watches portfolio. The Titan brand
was extended to Tanishq and other retail businesses. Jewellery business now contributes
~80% to sales with Tanishq being the largest (has jewellery retail space of ~0.7mn sq ft) and
most reputed jeweller in the organized space.
Investment Theme
The Indian retail landscape is evolving with interplay of several demographic and economic
factors. The long‐term prospects backed by changing consumer behaviour in favour of larger
discretionary spending, has set the stage for a healthy growth in the retail space over the
next five years. The big opportunity lies in the growing share of organised retail with
growing trend among consumers to allocate a larger share of income to consumption and
gradual improvement in lifestyle.
Titan has assiduously positioned itself in the premium designer jewellery space. We believe
Titan has the ability to create significant value with its large distribution presence, strong
brand, designing skills and proven execution track record. Titan has proved its metal time
and again by emerging strong and successful against various regulatory hurdles that have
emerged over the past one year. With robust balance sheet, strong brand equity and
professional management team in place we remain bullish on Titan.
Key Risks
Reduction in customs duty: Customs duty which is currently at 10% has lead to rampant
smuggling and it is likely that it will be reduced in the near term. Any reduction in custom
duty will lead to write back in inventory.
Deterioration of macro conditions: Poor macro outlook could lead to prolonged slowdown
in the company’s growth as the company’s revenues depend on discretionary spend.
Volatility in gold prices: Gold prices have a significant bearing on gold demand. Any steep
rise in prices results in lower demand, and investment buying that comes in is low margin.
Margin pressure due to deterioration in product mix and investment buying: Down trading
in watches and jewellery divisions on account of fall in discretionary spending and higher
growth in tier II and IV towns could impact margins.
Business seasonal, restricted to marriage season and festivals: The jewellery segment is
seasonal with respect to marriage season and festivals. Additionally, the number of
wedding dates varies in a year. This could impact the company’s revenue.
Regulatory hurdles: As gold is one of the key import articles, Government actions to curb its
demand thereby impacts the jewellery business by reducing demand and/or increasing
costs like customs duty, lease rate, etc if not eased / tightened further pose a risk to the
jewellery business.
17 Edelweiss Securities Limited
Titan Company
Financial Statements
Income statement (INR mn)
Year to March FY14 FY15 FY16E FY17E
Net revenue 109,274 119,134 123,874 143,740
Materials costs 80,519 87,515 90,676 104,930
Gross profit 28,755 31,619 33,198 38,810
Employee costs 5,404 6,325 6,813 7,474
Other Expenses 8,863 9,989 9,786 11,212
Ad. & sales costs 4,044 3,821 4,955 5,606
EBITDA 10,443 11,484 11,644 14,518
Depreciation 675 896 915 912
EBIT 9,768 10,588 10,729 13,606
Add: Other income 1,202 708 879 1,035
Less: Interest Expense 871 807 457 480
Profit Before Tax 10,099 10,489 11,151 14,161
Less: Provision for Tax 2,751 2,326 2,565 3,540
Associate profit share (2) ‐ (5) (6)
Reported Profit 7,349 8,163 8,591 10,627
Adjusted Profit 7,349 8,163 8,591 10,627
Shares o /s (mn) 888 888 888 888
Adjusted Basic EPS 8.3 9.2 9.7 12.0
Diluted shares o/s (mn) 888 888 888 888
Adjusted Diluted EPS 8.3 9.2 9.7 12.0
Adjusted Cash EPS 9.0 10.2 10.7 13.0
Dividend per share (DPS) 2.1 2.3 2.9 3.6
Dividend Payout Ratio(%) 29.7 30.1 35.1 35.1
Common size metrics
Year to March FY14 FY15 FY16E FY17E
Materials costs 73.7 73.5 73.2 73.0
Staff costs 4.9 5.3 5.5 5.2
Ad. & sales costs 3.7 3.2 4.0 3.9
Other expenses 8.1 8.4 7.9 7.8
Depreciation 0.6 0.8 0.7 0.6
Interest Expense 0.8 0.7 0.4 0.3
EBITDA margins 9.6 9.6 9.4 10.1
EBIT margins 8.9 8.9 8.7 9.5
Net Profit margins 6.7 6.9 6.9 7.4
Growth ratios (%)
Year to March FY14 FY15 FY16E FY17E
Revenues 7.9 9.0 4.0 16.0
EBITDA 3.1 10.0 1.4 24.7
PBT 0.3 3.9 6.3 27.0
Adjusted Profit 1.3 11.1 5.2 23.7
EPS 1.3 11.1 5.2 23.7
Key Assumptions
Year to March FY14 FY15 FY16E FY17E
Company
GDP(Y‐o‐Y %) 6.9 7.4 8.0 8.7
Inflation (Avg) 9.5 5.9 5.0 5.0
Repo rate (exit rate) 8.0 7.5 6.8 6.5
USD/INR (Avg) 60.5 61.1 64.5 65.0
Watch ‐ growth (%) 6.8 6.7 8.0 12.0
Jewellery ‐ growth (%) 6.5 9.2 2.0 16.0
Eyewear ‐ growth (%) 28.0 24.0 20.0 25.0
Other ‐ growth (%) 105.4 (2.0) 30.0 35.0
EBITDA margin (%)
COGS as % of sales 73.7 73.5 73.2 73.0
Gold as % of COGS 80.5 80.5 80.5 80.5
Components as % of COGS 9.6 9.6 9.6 9.6
Purchases (% of COGS) 17.2 17.2 17.2 17.2
Staff costs (% of rev) 4.9 5.3 5.5 5.2
A&P as % of sales 3.7 3.2 4.0 3.9
Financial assumptions
Tax rate (%) 27.2 22.2 23.0 25.0
EBITDA margin 9.6 9.6 9.4 10.1
Capex (INR mn) (8,681) 15,856 7,766 4,864
Debtor days 15 18 15 15
Inventory days 171 165 170 170
Payable days 67 58 80 80
Cash conversion cycle 119 124 105 105
Dep. (% gross block) 6.5 7.4 6.5 5.5
Interest rate on cash 13.4 32.6 17.0 16.0
Dividend payout 29.7 30.1 35.1 35.1
18 Edelweiss Securities Limited
Retail
Peer comparison valuation
Market cap Diluted P/E (X) EV / EBITDA (X) ROAE (%)
Name (USD mn) FY16E FY17E FY16E FY17E FY16E FY17E
Titan Company 4,791 36.2 29.2 26.2 21.0 25.5 26.7
Future Retail 785 67.5 32.0 7.2 6.5 1.3 2.7
Jubilant Foodworks 1,492 59.1 38.6 27.6 19.3 22.1 27.4
Shoppers Stop 505 215.9 148.4 16.5 13.0 (0.2) 2.7
Wonderla Holidays 284 29.1 26.4 17.3 13.1 16.6 16.1
Median ‐ 59.1 32.0 17.3 13.1 16.6 16.1
AVERAGE ‐ 81.5 54.9 19.0 14.6 13.1 15.1
Source: Edelweiss research
Cash flow metrics
Year to March FY14 FY15 FY16E FY17E
Operating cash flow (5,547) 5,026 9,875 7,365
Investing cash flow (2,699) (898) (2,109) (2,501)
Financing cash flow 4,956 (10,335) (3,468) (4,204)
Net cash Flow (3,290) (6,207) 4,298 661
Capex 8,681 (15,856) (7,766) (4,864)
Dividend paid (2,181) (2,458) (3,015) (3,730)
Profitability and efficiency ratios
Year to March FY14 FY15 FY16E FY17E
ROAE (%) 32.7 29.1 25.5 26.7
ROACE (%) 41.4 34.7 33.5 35.8
Inventory Days 171 165 170 170
Debtors Days 15 18 15 15
Payable Days 67 58 80 80
Cash Conversion Cycle 119 124 105 105
Current Ratio 2.0 2.0 2.1 2.2
Gross Debt/EBITDA 0.8 0.1 0.1 0.1
Net Debt/Equity ‐ ‐ (0.1) (0.1)
Interest Coverage Ratio 11.2 13.1 23.5 28.4
Operating ratios
Year to March FY14 FY15 FY16E FY17E
Total Asset Turnover 4.0 3.6 3.5 3.5
Fixed Asset Turnover 20.3 18.1 15.9 15.3
Equity Turnover 4.9 4.2 3.7 3.6
Valuation parameters
Year to March FY14 FY15 FY16E FY17E
Adj. Diluted EPS (INR) 8.3 9.2 9.7 12.0
Y‐o‐Y growth (%) 1.3 11.1 5.2 23.7
Adjusted Cash EPS (INR) 9.0 10.2 10.7 13.0
Diluted P/E (x) 42.3 38.1 36.2 29.2
P/B (x) 12.3 10.1 8.5 7.2
EV / Sales (x) 2.8 2.6 2.5 2.1
EV / EBITDA (x) 29.7 27.0 26.2 21.0
Dividend Yield (%) 0.6 0.7 0.8 1.0
Balance sheet (INR mn)
As on 31st March FY14 FY15 FY16E FY17E
Share capital 888 888 888 888
Reserves & Surplus 24,340 29,951 35,527 42,423
Shareholders' funds 25,227 30,839 36,414 43,311
Total Borrowings 8,068 998 998 998
Long Term Liabilities 741 905 905 905
Def. Tax Liability (net) (88) (193) (193) (193)
Sources of funds 33,948 32,548 38,123 45,020
Gross Block 11,319 12,824 15,324 17,824
Net Block 6,005 6,889 8,474 10,062
Capital work in progress 329 552 161 162
Intangible Assets 137 102 102 102
Total Fixed Assets 6,471 7,543 8,737 10,327
Non current investments 31 31 31 31
Cash and Equivalents 8,927 2,138 6,436 7,096
Inventories 38,694 40,493 42,233 48,871
Sundry Debtors 1,541 1,897 1,968 2,284
Loans & Advances 5,190 6,340 5,091 5,907
Other Current Assets 167 44 44 44
Current Assets (ex cash) 45,592 48,774 49,336 57,106
Trade payable 8,594 19,396 19,874 22,998
Other Current Liab 18,478 6,542 6,542 6,542
Total Current Liab 27,072 25,938 26,416 29,540
Net Curr Assets‐ex cash 18,520 22,836 22,919 27,566
Uses of funds 33,948 32,548 38,123 45,020
BVPS (INR) 28.4 34.7 41.0 48.8
Free cash flow (INR mn)
Year to March FY14 FY15 FY16E FY17E
Reported Profit 7,349 8,163 8,591 10,627
Add: Depreciation 675 896 915 912
Interest (Net of Tax) 634 628 352 360
Others 235 179 100 114
Less: Changes in WC 15,619 (7,496) 84 4,647
Operating cash flow (6,725) 17,361 9,875 7,365
Less: Capex 1,956 1,505 2,109 2,501
Free Cash Flow (8,681) 15,856 7,766 4,864
19 Edelweiss Securities Limited
Titan Company
Top 10 holdingsPerc. Holding Perc. Holding
Jhunjhunwala Rakesh 6.7 Matthews International Capital 4.5
Dendana Investments Mauritius Lt 2.2 Jhunjhunwala Rekha Rakesh 1.9
First State Investments Icvc 1.7 Copthall Mauritius Inv Ltd 1.5
Franklin Templeton Investments 0.9 Uti Asset Management Co Ltd 0.8
Fidelity Management & Research 0.8 Prudential Icici Asset Mgmt Co 0.8
*as per last available data
Insider Trades Reporting Data Acquired / Seller B/S Qty Traded
12 Aug 2015 Tata Sons Limited Buy 19387920.00
*in last one year
Bulk Deals Data Acquired / Seller B/S Qty Traded Price
11 Aug 2015 Tata Steel Ltd Sell 19387920 329.35
11 Aug 2015 Tata Sons Ltd Buy 19387920 329.35
*in last one year
Additional Data
Directors Data Hans Raj Verma Chairman Mr. T.K. Arun Non‐Executive, Non‐Independent Director
Mr.Ishaat Hussain Director Mr.N.N.Tata Non‐Executive, Non‐Independent Director
Mr. Bhaskar Bhat Managing Director Mr. T.K.Balaji Non‐Executive, Independent Director
Dr. C.G.Krishnadas Nair Non‐Executive, Independent Director Ms. Vinita Bali Non‐Executive, Independent Director
Ms. Hema Ravichandar Non‐Executive, Independent Director Mrs. Ireena Vittal Non‐Executive, Independent Director
Prof. Das Narayandas Non‐Executive, Independent Director Mr. N.S. Palaniappan Non‐Executive, Non‐Independent
Auditors ‐ Deloitte Haskins & Sells
*as per last annual report
20 Edelweiss Securities Limited
Company Absolute
reco Relative
reco Relative
risk
Company Absolute
reco
Relative
reco
Relative
Risk
Future Retail HOLD SU H Jubilant Foodworks BUY SP M
Shoppers Stop BUY SP L Titan Company BUY SP L
Wonderla Holidays BUY SP M
RATING & INTERPRETATION
ABSOLUTE RATING
Ratings Expected absolute returns over 12 months
Buy More than 15%
Hold Between 15% and - 5%
Reduce Less than -5%
RELATIVE RETURNS RATING
Ratings Criteria
Sector Outperformer (SO) Stock return > 1.25 x Sector return
Sector Performer (SP) Stock return > 0.75 x Sector return
Stock return < 1.25 x Sector return
Sector Underperformer (SU) Stock return < 0.75 x Sector return
Sector return is market cap weighted average return for the coverage universe within the sector
RELATIVE RISK RATING
Ratings Criteria
Low (L) Bottom 1/3rd percentile in the sector
Medium (M) Middle 1/3rd percentile in the sector
High (H) Top 1/3rd percentile in the sector
Risk ratings are based on Edelweiss risk model
SECTOR RATING
Ratings Criteria
Overweight (OW) Sector return > 1.25 x Nifty return
Equalweight (EW) Sector return > 0.75 x Nifty return
Sector return < 1.25 x Nifty return
Underweight (UW) Sector return < 0.75 x Nifty return
21 Edelweiss Securities Limited
Titan Company
252
308
364
419
475
531
Oct‐14
Nov‐14
Dec‐14
Jan‐15
Feb‐15
Mar‐15
Apr‐15
May‐15
Jun‐15
Jul‐15
Aug‐15
Sep‐15
(INR)
Titan Company
Edelweiss Securities Limited, Edelweiss House, off C.S.T. Road, Kalina, Mumbai – 400 098.
Board: (91‐22) 4009 4400, Email: [email protected]
Nirav Sheth
Head Research
Coverage group(s) of stocks by primary analyst(s): Retail
Future Retail, Jubilant Foodworks, Shoppers Stop, Titan Company, Wonderla Holidays
Distribution of Ratings / Market Cap
Edelweiss Research Coverage Universe
Rating Distribution* 155 45 8 208* stocks under review
Market Cap (INR) 151 54 3
Date Company Title Price (INR) Recos
Recent Research
27‐Oct‐15 Wonderla Holidays
Footfalls recover; guidance maintained; Result Update
316 Buy
07‐Oct‐15 Retail Yum! brands skids further; JFL steady; Sector Update
23‐Sep‐15 Wonderla Holidays
MD meet takeaways –Confident on expansion and recovery; Visit Note
278 Buy
> 50bn Between 10bn and 50 bn < 10bn
Buy Hold Reduce Total
Rating Interpretation
Buy appreciate more than 15% over a 12‐month period
Hold appreciate up to 15% over a 12‐month period
Reduce depreciate more than 5% over a 12‐month period
Rating Expected to
One year price chart
22 Edelweiss Securities Limited
Retail
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23 Edelweiss Securities Limited
Titan Company
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24 Edelweiss Securities Limited
Retail
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