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MOSL: Morning India (5/February/20): 1. Titan Company (Margins surprise, jewelry growth guidance muted); 2. Bharti Airtel; 3. Technology; 4. EcoScope; 5. Bulls & Bears; 6. PNB; 7. GSK Pharma; 8. Tata Global

Morning India (5/February/20):

Today’s top research idea
Titan Company: Margins surprise, jewelry growth guidance muted
** While TTAN's revenue growth was in line with the guidance, the positive surprise from the result was the jewelry margin of 13% and the EBITDA margin of 12%.

** Despite 15% retail jewelry YoY sales growth in 3QFY20, TTAN has maintained its 2HFY20 guidance of 11-13% jewelry sales growth, considering Jan'20 sales growth of only 8%.

** Our longer-term investment case in TTAN remains strong, as the company is well placed to grow its share from current level of 9% in the largely unorganized Indian jewelry market.

** However fair multiples (56.1x FY21 EPS/43.5x FY22 EPS), tepid guidance for 4QFY20 and uncertainty of jewelry sales recovery in FY21 lead us to maintain Neutral rating on the stock.

 Piping hot news
Government working on proposal to allow 100 pc FDI in Air India
The government is working on a proposal to allow 100 per cent foreign direct investment in Air India as it moves ahead with disinvestment of the national carrier, according to sources. Currently, FDI in Air India is capped at 49 per cent through the government approval route while 100 per cent FDI is permitted in scheduled domestic carriers, subject to certain conditions, including that it would not be applicable for overseas airlines.