Rakesh Jhunjhunwala’s Top Stock: Street Expects Up to 100% YoY Profit Growth in Q3

By Malvika Gurung

Investing.com — The Indian luxury products company Titan (NS:) will release its earnings for the Dec 2021 quarter on Feb 3, and market analysts expect an impressive double-digit growth, and in some cases, even triple-digit growth in its bottom-line, led by healthy demand across its product line, paired with stable prices.

Analysts from various brokerages expect up to 107% growth in the company’s net profit, at around Rs 840 crore in Q3 FY22, compared to Rs 419 crore in FY21.

Emkay Global (NS:) pegs the net profit at Rs 777.6 crore, up 85% YoY, and expects the EBITDA margin to improve 150 bps, due to strong operating leverage and improved studded mix.

The company’s revenue is expected to grow up to 35% YoY to Rs 10,394 crore in Q3, due to strong demand amid heavy festival purchases in October and November, and the wedding season. Kotak Securities projects revenue growth of 19% YoY to Rs 8,665 crore in the quarter.

The Tata Group brand recorded a 36% revenue growth across its consumer businesses in Q3.

Ace investor Rakesh Jhunjhunwala and his wife Rekha Jhunjhunwala increased their stakes in the company by 0.22% in Q3 to 5.09%.

On the operating front, Titan’s EBITDA is expected to rise 43% YoY to Rs 1,224 crore, and EBITDA margin could stand at 12.5-13.1%, led by strong growth in sales.

Analysts estimate a total sales growth of 25% YoY, led by the jewellery business, followed by the watches and eyewear segments.

The jewellery segment is expected to have a sales growth of 25-37%, and the watches and eyewear segments of about 28% YoY.