EUR 120.00 For Business Accounts Only

MOSL: Morning India (28/October/21): 1. Titan Company (Well-poised to shine brighter); 2. ITC; 3. Larsen & Toubro; 4. Maruti Suzuki; 5. SBI Life Insurance; 6. Bajaj Auto; 7. IndusInd Bank; 8. United Spirits

MOrning India (28/October/21): 1. Titan Company (Well-poised to shine brighter); 2. ITC; 3. Larsen & Toubro; 4. Maruti Suzuki; 5. SBI Life Insurance; 6. Bajaj Auto; 7. IndusInd Bank; 8. United Spirits

 

Today’s top research idea

Titan Company: Well-poised to shine brighter

• Titan Company's (TTAN) sales for 2QFY22 were in-line (up 64.6%) at INR74.9b, although the operating margin at 12.9% for the quarter (est. 10.7%) came as a positive surprise and stood at its second-highest level since 2QFY06. This led to EBITDA and PAT surpassing our estimates by more than 20%.
• What was even more remarkable was that this margin improvement was achieved in a quarter that still did not see the contribution from Studded jewellery returning to normal levels and witnessed low margin bullion sales as well. Nevertheless, the sharp increase in sales is likely to have helped TTAN on the operating leverage front. Management has stated that it aims to keep jewellery margins in the 12-13% range.
• Jewellery outlook remains good as well, given the healthy festive season commentary. Management has also indicated significant expansion plans in the company's smaller businesses like Eyewear and Taneira. Maintain Buy.

Piping hot news

Forex reserves surge by $58.38 bn in first half of FY22: RBI report

During the half-year period under review, reserves increased from $576.98 billion as at end-March 2021 to $635.36 billion as at end-September 2021, the RBI report said. As of end-September 2021, out of the total FCA of $573.60 billion, $383.74 billion was invested in securities, $147.86 billion was deposited with other central banks and the BIS and the balance $42.00 billion comprised deposits with commercial banks overseas, it said.