Titan Industries Ltd. Results Q1FY10

Recommendation Sell CMP Currently trading at PE of 30xFY10P earnings. Target Price – Rs (valuing at 25xFY10P)

Q1FY10 Performance  9% y-o-y growth in topline.  EBITDA grew by 41%.  Operating margin improved by 200 bps  Interest cost increased by 46%.  Net Profit increased by 42% to Rs460mln.  EPS increased to from 7.28 in Q1FY09.

(Rs Mn)Q1 FY10 Q1 FY09 ChangeFY09FY08Change Sales % % EBITDA % % EBITDA Margin 9%7%200 bps8% - Net Profit % % Net Profit Margin 5%4%100 bps4%5%-100bps EPS

Highlights  Jewellery segment grew by 3% while watch segment grew by 21%  Precision eyewear segment incurred loss 89 mln at PBT level  Margins from jewellery segment is low despite of 72% contribution in revenues  Retail expansion continued with opening of 18 stores taking the retail space to 0.6 mln sqft.

Revenue Mix SegmentQ1FY10Q1FY09 Watch2421 Jewellery7276 Others43

Market Data FY09 Promoters53.05 MFs/FIs/Banks7.09 FIIs/NRIs/OCBs12.31 Public & Others27.55 Market Cap. Rs 57.9 bln 52-Wk High/Low 1375/668 Avg.Volume Stock Beta 0.66 Shares in issue 44 mln

1 Yr Stock Price Movement 52 week high week low CMP

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