EUR 120.00 For Business Accounts Only

MOSL: Morning India (07/August/19): 1. Titan Company (Near-term uncertainty leads to earnings cut); 2. Pidilite Inds; 3. Hindalco Inds; 4. Indiabulls Hsg Fin.; 5. SRF; 6. Aditya Birla Fashion; 7. Torrent Power;

MOrning India (07/August/19): 1. Titan Company (Near-term uncertainty leads to earnings cut); 2. Pidilite Inds; 3. Hindalco Inds; 4. Indiabulls Hsg Fin.; 5. SRF; 6. Aditya Birla Fashion; 7. Torrent Power; 8. JSW Energy

 

Today’s top research Idea

Titan Company: Near-term uncertainty leads to earnings cut; Investment case intact

• Numbers were in line with low expectations with consolidated revenue growth of 15.7% YoY to INR51.5b (v/s est. of INR50.7b). EBITDA increased 18.8% YoY to INR5.7b (v/s est. of INR5.3b) and recurring PAT was up 11% YoY to INR3.6b (in-line).
• Uncertainty surrounding gold prices has led to an EPS cut of ~6% each for FY20/FY21. However, the longer-term investment case remains strong as Titan is well placed to grow led by a combination of its own initiatives and regulatory tailwinds. With over 60% of the jewelry segment growth continuing to come from SSSG, operating margins are also likely to improve.
• Targeting 50x FY21 EPS, we get a TP of INR1,210. Maintain Buy.

Piping hot news

DHFL assures lenders of zero haircut on the principal under resolution plan

The troubled Dewan Housing Finance Corporation Ltd (DHFL) on Tuesday assured that its lenders will not have to face any haircuts under the resolution plan. As part of the resolution plan, which was cleared by the Special Committee of the DHFL Board on Tuesday, DHFL will put a moratorium of repayments and will also seek funding from banks and the National Housing Board for re-starting retail lending.