titan industries - result update-jan-13-edelbreport.myiris.com/es1/titindus_20130130.pdf ·...

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Edelweiss Securities Limited

Titan Industries’ (Titan) Q3FY13 sales and PAT were bang in line with our

estimates aided by the festive and marriage season. Key positives include:

(1) strong surge in jewellery revenue aided by 12% YoY volume growth

(dipped 11% and 21% YoY in Q2FY13 and Q1FY13, respectively) driven by

Tanishq, which posted sales growth of 19% YoY with LTL growth of 10%

YoY; (2) recovery in watches volume at 4% YoY against 1% YoY in H1FY13;

and (3) robust retail expansion (added 39 new stores across formats). Key

negatives were: (i) drop in share of studded jewellery; and (ii) muted sales

growth of PED (due to temporary issue of order postponement). We

expect Titan to be one of the key beneficiaries of likely improvement in

consumer sentiments (due to cut in interest rates, policy reforms and

rising stock market) and likely rupee appreciation (will aid watch margin).

Maintain ‘BUY’.

This report also contains Q3FY13 conference call highlights.

Jewellery shimmers on festive cheer

Jewellery grew 26.7% YoY to ~INR25.2bn. Tanishq posted 10% LTL growth (12% YoY

growth in Q2FY13) and GoldPlus LTL growth improved to 12% YoY (dipped 8% YoY in

Q2FY13); net closure of one store. Share of studded jewellery declined to 22% from

26.2% in Q2FY12. Customer growth rose 12% YoY (against 7%, (2%) and 4%, Q2FY13,

Q1FY13 and Q4FY12, respectively); ticket size increased 2% YoY. Watches sales grew at

10.6% YoY and volume grew 4% YoY. While eyewear surged an impressive 21% YoY, PED

faced temporary issues.

Margin: Jewellery shines, but watches disappoint

Jewellery margin stood at 9.8%, which improved 21bps YoY. Watches EBIT margin

dipped 46bps YoY due to excise hike and higher material costs.

Outlook and valuations: Positive; maintain ‘BUY’

We expect Titan’s volume and margin to improve in the coming quarters. The stock is

trading at P/E of 33.8x and 27.6x on FY13E and FY14E, respectively. We maintain ‘BUY’

recommendation and ‘Sector Outperformer’ rating on the stock.

RESULT UPDATE

TITAN INDUSTRIES Shining on festive glitter

EDELWEISS 4D RATINGS

Absolute Rating BUY

Rating Relative to Sector Outperformer

Risk Rating Relative to Sector Low

Sector Relative to Market Underweight

MARKET DATA (R: TITN.BO, B: TTAN IN)

CMP : INR 276

Target Price : INR 320

52-week range (INR) : 314 / 190

Share in issue (mn) : 887.8

M cap (INR bn/USD mn) : 245 / 4,586

Avg. Daily Vol.BSE/NSE(‘000) : 2,494.6

SHARE HOLDING PATTERN (%)

Current Q2FY13 Q1FY13

Promoters *

53.1 53.1 53.1

MF's, FI's & BK’s 3.4 3.4 3.8

FII's 17.3 17.3 16.2

Others 26.2 26.2 27.0

* Promoters pledged shares

(% of share in issue)

: NIL

PRICE PERFORMANCE (%)

Stock Nifty

EW Retail

Index

1 month (2.0) 2.5 10.5

3 months 7.0 8.2 12.9

12 months 36.8 19.0 5.9

Abneesh Roy

+91 22 6620 3141

[email protected]

Hemang Gandhi

+91 22 6620 3148

[email protected]

Pooja Lath

+91 22 6620 3075

[email protected]

India Equity Research| Retail

January 30, 2013

Financials

Year to March Q3FY13 Q3FY12 % change Q2FY13 % change FY12 FY13E FY14E

Net rev. (INR mn) 30,178 24,401 23.7 22,760 32.6 88,493 102,411 124,462

EBITDA (INR mn) 2,828 2,249 25.7 2,494 13.4 8,363 10,087 12,384

Net profit (INR mn) 2,037 1,639 24.3 1,801 13.1 6,015 7,239 8,862

EPS (INR) 2.3 1.8 2.0 6.8 8.2 10.0

P/E (x) 40.7 33.8 27.6

EV/EBITDA 28.1 22.7 18.3

ROAE (%) 48.2 42.2 38.9

Retail

2 Edelweiss Securities Limited

Q3FY13 concall: Key takeaways

Jewellery sales: Jewellery grew at 26.7% YoY (on base of 25% YoY) to INR25.1bn. Volume

growth was 12% YoY (down 21% and 11% YoY in Q1FY13 and Q2FY13, respectively).

Customer growth stood at 12% YoY with Tanishq posting 11% YoY LTL growth (3% and 12%

YoY growth in Q1FY13 and Q2FY13, respectively), GoldPlus saw LTL growth 12% YoY (8% YoY

decline in Q1FY13 and Q2FY13 each). Share of studded jewellery decreased to 22% YoY

(against 25% and 32% YoY in Q1FY13 and Q2FY13, respectively). Increase in share of gold

jewellery (as expected) led to overall jewellery margin of 9.8% YoY (Q2FY13 was the highest

jewellery margin quarter due to high share of studded jewellery on the back of activations in

diamond). Studded jewellery posted single digit growth. December saw sustained sales

momentum as in the festive period, though some moderation was seen in January. Titan’s

jewellery EBIT grew 29.5% YoY to INR2.5bn with slight margin improvement of 21bps YoY to

9.8%.

Drop in share of studded jewellery: Studded jewellery witnessed single digit growth as

some consumers preferred gold jewellery over diamond (seen for other players also).

However, this may be a temporary phenomenon. Titan has maintained its target of

achieving 40% of studded jewellery share over the longer term.

RBI’s harsh stance on gold: Direct import of gold, which can lead to 50bps improvement in

margin (due to savings of 1% VAT paid), has been delayed as the credit day for direct import

is reduced to 90days. Titan has thus chosen to compromise the margin benefit to maintain

working capital cycle by importing gold from domestic banks which offer 180 days of credit

period (though this leads to 25bps margin reduction). The company has applied to RBI to

consider its case to extend credit days on direct import to 180. RBI’s current harsh stance on

gold loan may lead to domestic banks reducing the credit period as well. In that case, Titan

will evaluate all available options; including direct import of gold which will be more

lucrative then.

Expansion in jewellery: Titan added 49,000 sq ft in Tanishq in Q3FY13, taking the total area

to 0.504mn sq ft. Also, larger Goldplus stores are being planned in FY13 in existing towns.

Mia range has experienced exceedingly good response; MQ range has only been soft

launched and not deployed to exploit its full potential.

Watches: Watches segment revenue grew 10.6% YoY (to INR4.2bn); volume grew 4% YoY

(up 2% YoY in 9MFY13). EBIT rose 6.5% YoY; margins posted marginal decline of 46bps due

to higher COGS on account of INR volatility and not due to Helios format. The moderation in

decline is mainly attributable to impact of price hikes initiated in CY12. Titan expects margin

to have bottomed out and will benefit from rupee appreciation.

Others: Eyewear posted 21% YoY revenue growth. Titan Eye+ reported LTL growth of 14%

YoY. Precision engineering (PED) experienced some slowdown due to temporary issue of

delayed invoicing.

Retail expansion: Expansion remains on track. Titan added 6 World of Titan showrooms, 10

Fastrack, 9 Helios and 9 Tanishq stores. Total area of 49,000 sq ft was added in jewellery in

Q3FY13.

Titan Industries


Expansion into newer categories: Titan’s entry into helmet category has been delayed.

Titan indicated that will establish itself in the kid’s accessories space. It clarified that it has

no intention to venture into the edutainment space.

Ad spends: Ad spends have dipped 133bps YoY as Titan has decreased brand level

investment, though investment at consumer level has been kept intact.

Other income: Titan reported 11% dip in other income, which mainly comprises sale of non-

moving jewellery and stones.

Recent developments

• Mr. N. S. Palaniappan, nominee of Tamilnadu Industrial Development Corporation

(TIDCO), was appointed as Chairman & Director on the Board of the Company after Mr.

Vikram Kapur, resigned as Chairman & Director consequent to his transfer.

• Titan is looking at tier 2 and 3 locations to derive growth in its mid to high end watches

retail segment Helios.

• Tanishq launched fashion jewellery collection IVA (18kt gold range that starts at

INR20,000) and will be available in Tanishq stores across Delhi, Mumbai, Bengaluru,

New Delhi, Kolkata, Pune, Ludhiana, Chandigarh and Hyderabad.

• Titan plans to add 100 Helios stores in the next 2-3 years and currently has 37 stores in

the country’s top cities.

• Helios stores 25 international brands and is in talks with other brands in the price range

of INR7,000‐30,000.

• Titan is setting up one more assembly unit in Uttarakhand at an investment of

INR500mn to produce jewellery.

• It launched an exclusive new collection under its Tycoon range of watches for men

targeted at entrepreneurs and self employed businessmen. The price range is from

INR3,495 to INR15,995.

• Titan will expand its accessories division—belts for women and handbags made of pure

leather will be launched by December In a survey when asked about brand recall

December. survey, and the most admired ones, Tanishq emerged on the top in both

categories. It was followed by Mehrason (84%), PC Jewellers (84%), Nakshatra (81%),

Sanchi (77%) and Gitanjali (63%).

Sector developments

• The government raised the import duty on gold and platinum to 6% from 4% with

immediate effect. It also announced reduction of maturity of gold to 6 months from 3

years.

• RBI capped gold lease period for direct gold imports at 90 days. This is against 180 days

gold lease available to Titan through domestic banks.

Other companies’ developments

• PC Jewellers successfully completed its IPO worth INR6bn at a price band of INR125‐135/ share.

• Gitanjali Group has acquired domestic brands Nirvana and Viola which will help the

company gain an additional market share of 15%.

Retail


• Gitanjali Jewels is planning to open 60‐65 stores in smaller towns by end 2013 and will

bank on the increasing income levels and brand consciousness in these towns.

• Forevermark (diamond brand from De Beers) has partnered with Sunny Diamonds to

unveil its new collection in the Kerala market. De Beers has partnered with 85 retailers

in 13 cities.

• Forevermark plans to set up 130‐140 retail outlets in the country by 2013 end.

• Shree Ganesh Jewellery House has announced 75:25 joint venture with Rock Creation

of Dhaka (Bangladesh). The JV will set up a manufacturing unit in Dhaka 200kg of gold

jewellery capacity at an initial investment of INR200mn, which will be increased to

INR500mn.

Outlook and valuations: Positive; maintain ‘BUY’

Titan’s jewellery volumes revived in Q3FY13 owing to the festive and marriage season.

Watches volume growth has also picked up and price hike in watches has come into full

effect. Expansion remains on track, which will help sustain growth. We expect Titan to be

one of the key beneficiaries of likely improvement in consumer sentiments (due to cut in

interest rates, rising stock markets and policy reforms) and likely rupee appreciation (will

aid watch margins). Hence, we assign a higher target P/E of 32x (30x earlier) and arrive at a

target price of INR320. At CMP, the stock is trading at 33.8x and 27.6x FY13E and FY14E EPS,

respectively, and maintain ‘BUY’ and rate the stock ‘Sector Outperformer’ on relative

return basis.

Chart 1: Jewellery margin up YoY Chart 2: Jewellery revenue growth picks up

Source: Company, Edelweiss research

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Titan Industries


Chart 3: Watches margin dip YoY Chart 4: Watches revenue growth slows down

Chart 5: Others EBIT margin contract Chart 6: Others revenue growth flattish


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Retail


Table 1: Segmental performance

Table 2: Growth across formats

Table 3: Aggressive expansion plan (no. of stores)


% growth % growth

Titan (Year to March) Q3FY13 Q3FY12 Y-o-Y Q2FY13 Q-o-Q

Revenue

Watches & clocks 4,235 3,831 10.6 4,718 (10.2)

Jewellery 25,152 19,859 26.7 17,239 45.9

Others 983 942 4.3 974 0.9

Corporate unallocated 28 16 69.5 67 (58.6)

Total 30,398 24,648 23.3 22,998 32.2

PBIT

Watches & clocks 512 480 6.5 547 (6.5)

Jewellery 2,466 1,904 29.5 2,150 14.7

Others 17 51 (66.8) (43) (139.3)

Total 2,994 2,436 22.9 2,654 12.8

PBIT margins

Watches & clocks 12.1 12.5 (46) 11.6 49

Jewellery 9.8 9.6 21 12.5 (267)

Others 1.7 5.4 (370) (4.4) 618

Total 9.8 9.9 (3) 11.5 (169)

Sales value growth (% YoY) Like to Like growth (% YoY)

World of Titan 14 11

Tanishq 19 10

Goldplus 6 12

Helios 85 18

Fastrack 97 31

LFS - Watches 20 10

Titan Eye+ 24 14

FY09 FY10 FY11 FY12 Q1FY13 Q2FY13 Q3FY13 FY13E

Jewellery 145 146 151 163 166 168 176 213

Tanishq 113 114 120 129 132 134 143 164

Goldplus 30 30 29 32 32 32 31 47

Zoya 2 2 2 2 2 2 2 2

Watches 265 316 364 459 472 502 527 632

World of Titan 265 291 311 332 337 348 354 387

Fastrack 24 47 102 110 122 132 180

Helios 1 6 25 25 32 41 65

EyePlus 70 82 150 205 209 209 215 225

Total 480 544 665 827 847 879 918 1,070

Titan Industries


Financial snapshot (INR mn)

Year to March Q3FY13 Q3FY12 % change Q2FY13 % change YTD13 FY13E FY14E

Net revenues 30,178 24,401 23.7 22,760 32.6 74,994 102,411 124,462

Raw material costs 23,207 18,288 26.9 16,343 42.0 55,800 75,374 91,666

Ad spend 1,088 1,205 (9.8) 983 10.7 3,105 4,608 5,601

Employee expenses 1,169 979 19.4 1,161 0.7 3,369 4,660 5,725

Other expenses 1,887 1,680 12.3 1,780 6.0 5,280 7,681 9,086

EBITDA 2,828 2,249 25.7 2,494 13.4 7,441 10,087 12,384

Depreciation 142 119 19.0 130 8.9 395 533 638

EBIT 2,686 2,129 26.1 2,364 13.6 7,046 9,554 11,746

Other income 220 247 (11.0) 238 (7.6) 710 970 1,121

EBIT including other income 2,906 2,377 22.3 2,602 11.7 7,756 10,524 12,867

Interest 117 129 (9.7) 121 (3.7) 364 469 559

Profit before tax 2,789 2,247 24.1 2,481 12.4 7,392 10,054 12,308

Tax 752 608 23.5 679 10.6 1,992 2,815 3,446

Diluted EPS (INR) 2.3 1.8 24.3 2.0 13.1 6.1 8.2 10.0

As % of net revenues

Raw material 76.9 74.9 71.8 74.4 73.6 73.7

Ad spend 3.6 4.9 4.3 4.1 4.5 4.5

Employee cost 3.9 4.0 5.1 4.5 4.5 4.6

Other expenses 6.3 6.9 7.8 7.0 7.5 7.3

Total expenses 90.6 90.8 89.0 90.1 90.2 90.0

EBITDA 9.4 9.2 11.0 9.9 9.9 9.9

PBT 9.2 9.2 10.9 9.9 9.8 9.9

Adjusted net profit 6.8 6.7 7.9 7.2 7.1 7.1

Tax rate 26.9 27.1 27.4 26.9 28.0 28.0

Retail


Company Description

Titan was incorporated in 1984 as a joint venture between the TATA Group and Tamil Nadu

Industrial Development Corporation (TIDCO), a Government of Tamil Nadu undertaking. The

company manufactures and markets quartz watches since 1987 and is now India’s leading

watch manufacturer and retailer. Gradually, jewellery, precision engineering, eyewear,

accessories, and licensed products were added to the watches portfolio to leverage on the

premium positioning that was assiduously achieved and the success of the Titan brand was

extended to Tanishq and other retail businesses. Its watch brands include Titan, Edge,

Fastrack, Nebula, Raga, Steel, Regalia, Bandhan, Zoop, and Sonata. The company has also

acquired a license for marketing global brands Tommy Hilfiger and Hugo Boss in India.

Investment Theme

The Indian retail landscape is evolving with interplay of several demographic and economic

factors. The long-term prospects backed by changing consumer behaviour in favour of larger

discretionary spending, has set the stage for a healthy growth in the retail space over the

next five years. The big opportunity lies in the growing share of organised retail with

growing trend among consumers to allocate a larger share of income to consumption and

gradual improvement in lifestyle.

Titan has assiduously positioned itself in the premium watch and designer jewellery space.

With constant product innovation it has become the largest organised player in both these

segments. Given its well established brand and sound management we expect Titan to

replicate this success in its new eyewear venture as well. We believe Titan has the ability to

create significant value with its large distribution presence, strong brand, designing skills

and proven execution track record.

Key Risks

Deterioration of macro conditions: Poor macro outlook could lead to prolonged slowdown

in the company’s growth as the company’s revenues depend on discretionary spend.

Volatility in gold prices: Gold prices have a significant bearing on gold demand. Any steep

rise in prices results in lower demand, and investment buying that comes in is low margin.

Margin pressure due to deterioration in product mix and investment buying:

Down trading in watches and jewellery divisions on account of fall in discretionary spending

and higher growth in tier II and IV towns could impact margins.

Sustained losses in new initiatives: New initiatives like Eye+ and the precision engineering

division are currently a drain on profitability. With the slowdown in consumption these are

unlikely to turn around in the next couple of years. Prolonged losses in these divisions will

impact overall profitability.

Business seasonal, restricted to marriage season and festivals: The jewellery segment is

seasonal with respect to marriage season and festivals. Additionally, the number of wedding

dates varies in a year. This could impact the company’s revenue.


Titan Industries

Financial Statements

Income statement (INR mn)

Year to March FY12 FY13E FY14E FY15E

Net revenue 88,493 102,411 124,462 148,736

Materials costs 65,402 75,374 91,666 109,544

Gross profit 23,091 27,036 32,796 39,192

Employee costs 3,977 4,660 5,725 6,842

Other Expenses 6,937 7,681 9,086 10,783

Advertisement & sales costs 3,814 4,608 5,601 6,619

EBITDA 8,363 10,087 12,384 14,948

Depreciation & Amortization 456 533 638 758

EBIT 7,906 9,554 11,746 14,190

Other income 936 970 1,121 1,265

EBIT incl. other income 8,842 10,524 12,867 15,455

Interest expenses 437 469 559 512

Profit before tax 8,405 10,054 12,308 14,943

Provision for tax 2,390 2,815 3,446 4,184

Net profit 6,015 7,239 8,862 10,759

Share in profit of associates (1) - - -

Profit after minority interest 6,014 7,239 8,862 10,759

Shares outstanding (mn) 888 888 888 888

Diluted EPS (INR) 6.8 8.2 10.0 12.1

Dividend per share (INR) 1.8 2.1 2.6 3.2

Dividend payout (%) 25.8 26.0 26.0 26.0

Common size metrics


Materials costs 73.9 73.6 73.7 73.7

Employee expenses 4.5 4.5 4.6 4.6

EBITDA margins 9.4 9.8 9.9 10.1

Net profit margins 6.8 7.1 7.1 7.2

Growth ratios (%)


Revenues 35.4 15.7 21.5 19.5

EBITDA 35.6 20.6 22.8 20.7

Net profit 38.9 20.4 22.4 21.4

EPS 38.9 20.4 22.4 21.4

Key Assumptions


Company

GDP(Y-o-Y %) 6.5 5.5 6.5 7.0

Inflation (Avg) 8.8 7.8 6.0 6.0

Repo rate (exit rate) 8.5 7.5 6.8 6.0

USD/INR (Avg) 47.9 54.5 54.0 52.0

Revenue growth (Y-o-Y %)

Watch - growth (%) 20.2 12.5 18.0 16.0

Jewellery - growth (%) 39.5 16.0 22.0 20.0

Eyewear - growth (%) 26.0 24.0 25.0 22.0

Other - growth (%) 43.7 27.0 30.0 26.0

EBITDA margin (%)

COGS as % of sales 73.9 73.6 73.7 73.7

Gold as % of COGS 79.8 80.1 80.5 80.5

Components as % of COGS 9.4 9.5 9.6 9.6

Purchase goods as % of COGS 17.6 17.3 17.2 17.2

Staff costs as % of sales 4.5 4.5 4.6 4.6

A&P as % of sales 4.3 4.5 4.5 4.5

Financial assumptions

Tax rate (%) 28.4 28.0 28.0 28.0

EBITDA margin 9.4 9.8 9.9 10.1

Capex (INR mn) 1,283 1,401 2,000 2,010

Debtor days 10 9 9 9

Inventory days 101 101 100 100

Payable days 92 92 92 92

Cash conversion cycle (days) 19 18 18 18

Depreciation as % of gross block 6.1 6.0 6.0 6.0

Interest rate on cash 9.7 10.0 7.1 7.1

Dividend as % of net profit 25.8 26.0 26.0 26.0


Retail

Peer comparison valuation

Market cap Diluted PE (X) EV/EBITDA (X) ROAE (%)

Name (USD mn) FY13E FY14E FY13E FY14E FY13E FY14E

Titan Industries 4,586 33.8 27.6 22.7 18.3 42.2 38.9

Jubilant Foodworks 1,465 52.8 37.8 29.1 21.0 39.4 37.4

Pantaloon Retail 1,047 49.7 30.5 8.4 7.9 2.8 3.8

Shoppers Stop 676 129.8 66.0 33.6 21.7 5.3 9.9

AVERAGE 66.5 40.5 23.5 17.2 22.4 22.5

Source: Edelweiss research

Cash flow metrics


Operating cash flow 1,595 10,166 7,282 8,995

Investing cash flow (699) (1,401) (2,000) (2,010)

Financing cash flow (2,349) (2,673) (3,251) (3,777)

Net cash flow (1,453) 6,091 2,031 3,208

Capex (1,283) (1,401) (2,000) (2,010)

Dividends paid (1,806) (2,183) (2,673) (3,245)

Share issuance/(buyback) 444 - - -

Profitability & efficiency ratios


ROAE (%) 48.2 42.2 38.9 36.3

ROACE (%) 61.5 55.6 51.6 47.9

Inventory day 101 101 100 100

Debtors days 10 9 9 9

Payable days 92 92 92 92

Cash conversion cycle (days) 19 18 18 18

Current ratio 1.0 1.0 1.0 1.1

Debt/Equity - - - -

Interest coverage 18.1 20.4 21.0 27.7

Operating ratios


Total asset turnover 6.9 6.0 5.5 5.0

Fixed asset turnover 24.8 22.6 22.1 21.4

Equity turnover 7.1 6.0 5.5 5.0

Valuation parameters


Diluted EPS (INR) 6.8 8.2 10.0 12.1

Y-o-Y growth (%) 38.9 20.4 22.4 21.4

CEPS (INR) 7.3 8.8 10.7 13.0

Diluted PE (x) 40.7 33.8 27.6 22.7

Price/BV (x) 16.7 12.4 9.5 7.3

EV/Sales (x) 2.7 2.2 1.8 1.5

EV/EBITDA (x) 28.1 22.7 18.3 15.0

Dividend yield (%) 0.6 0.8 0.9 1.1

Balance sheet (INR mn)

As on 31st March FY12 FY13E FY14E FY15E

Equity capital 888 888 888 888

Reserves & surplus 13,721 18,777 24,966 32,480

Shareholders funds 14,609 19,665 25,854 33,368

Long term debt 59 49 39 28

Current maturity of long term 54 44 34 25

Borrowings 113 93 73 53

Deferred tax liability (35) (35) (35) (35)

Sources of funds 14,687 19,723 25,892 33,386

Tangible assets 3,630 4,597 5,959 7,201

Intangible assets 209 209 209 209

CWIP (incl. intangible) 249 150 150 160

Total net fixed assets 4,088 4,956 6,318 7,569

Non current investments 24 24 24 24

Cash and equivalents 9,671 15,762 17,793 21,001

Inventories 28,820 28,213 34,254 40,894

Sundry debtors 1,652 1,609 1,921 2,255

Loans and advances 2,541 2,654 3,192 3,774

Other current assets 328 328 328 328

Total current assets (ex cash) 33,341 32,804 39,694 47,250

Trade payable 17,529 18,916 23,030 27,551

Others current liabilities 14,907 14,907 14,907 14,907

Total current liabilities & 32,437 33,823 37,937 42,459

Net current assets (ex cash) 904 (1,020) 1,757 4,791

Uses of funds 14,687 19,723 25,892 33,386

Book value per share (INR) 16.5 22.2 29.1 37.6

Free cash flow (INR mn)


Net profit 6,014 7,239 8,862 10,759

Add : Non cash charge 895 1,003 1,197 1,270

Depreciation 456 533 638 758

Others 439 469 559 512

Gross cash flow 6,908 8,242 10,059 12,029

Less: Changes in WC 7,494 (1,924) 2,777 3,034

Operating cash flow (585) 10,166 7,282 8,995

Less: Capex 1,283 1,401 2,000 2,010

Free cash flow (1,869) 8,764 5,282 6,985


Titan Industries

Insider Trades Reporting Data Acquired / Seller B/S Qty Traded

22 Feb 2012 Tata AIG Life Insurance Company Limited Sell 500000

24 Feb 2012 Tata AIG Life Insurance Company Limited Sell 159779

06 Mar 2012 Tata AIG Life Insurance Company Limited Sell 40000

07 Mar 2012 Tata Sons Ltd Buy 1381051

*in last one year

Bulk Deals Data Acquired / Seller B/S Qty Traded Price

No Data Available

*in last one year

Holding – Top10 Perc. Holding Perc. Holding

Jhunjhunwal Rakesh Radheys 7.49 Jhunjhunwala Rekha Rakesh 2.49

Matthews International Capital 1.70 Fidelity Management & Research 1.14

Vanguard Group Inc 1.12 Merrill Lynch Capital Markets Es 1.04

Iifl Vontobel India Sel Eq 1.04 Hdfc Asset Management Co Ltd 0.76

T Rowe Price Associates 0.75 Uti Asset Management Co Ltd 0.59

*as per last available data

Additional Data

Directors Data

Dr. N Sundaradevan Chairman Mr. V Parthasarathy Non-Executive, Non-Independent Director

Mr.Ishaat Hussain Director Mr.N.N.Tata Non-Executive, Non-Independent Director

Mr. Bhaskar Bhat Managing Director Mr. T.K.Balaji Non-Executive, Independent Director

Dr. C.G.Krishnadas Nair Non-Executive, Independent Director Ms. Vinita Bali Non-Executive, Independent Director

Ms. Hema Ravichandar Non-Executive, Independent Director Mr. R Poornalingam Non-Executive, Independent Director

Prof. Das Narayandas Non-Executive, Independent Director

Auditors - Deloitte Haskins & Sells

*as per last annual report


Company Absolute

reco

Relative

reco

Relative

risk

Company Absolute

reco

Relative

reco

Relative

Risk

Jubilant Foodworks HOLD SP M Pantaloon Retail HOLD SU H

Shoppers Stop BUY SP L Titan Industries BUY SO L

RATING & INTERPRETATION

ABSOLUTE RATING

Ratings Expected absolute returns over 12 months

Buy More than 15%

Hold Between 15% and - 5%

Reduce Less than -5%

RELATIVE RETURNS RATING

Ratings Criteria

Sector Outperformer (SO) Stock return > 1.25 x Sector return

Sector Performer (SP) Stock return > 0.75 x Sector return

Stock return < 1.25 x Sector return

Sector Underperformer (SU) Stock return < 0.75 x Sector return

Sector return is market cap weighted average return for the coverage universe

within the sector

RELATIVE RISK RATING

Ratings Criteria

Low (L) Bottom 1/3rd percentile in the sector

Medium (M) Middle 1/3rd percentile in the sector

High (H) Top 1/3rd percentile in the sector

Risk ratings are based on Edelweiss risk model

SECTOR RATING

Ratings Criteria

Overweight (OW) Sector return > 1.25 x Nifty return

Equalweight (EW) Sector return > 0.75 x Nifty return

Sector return < 1.25 x Nifty return

Underweight (UW) Sector return < 0.75 x Nifty return


Titan Industries

Edelweiss Securities Limited, Edelweiss House, off C.S.T. Road, Kalina, Mumbai – 400 098.

Board: (91-22) 4009 4400, Email: [email protected]

Vikas Khemani Head Institutional Equities [email protected] +91 22 2286 4206

Nischal Maheshwari Co-Head Institutional Equities & Head Research [email protected] +91 22 4063 5476

Nirav Sheth Head Sales [email protected] +91 22 4040 7499

Coverage group(s) of stocks by primary analyst(s): Retail

Jubilant Foodworks, Pantaloon Retail, Shoppers Stop, Titan Industries

Distribution of Ratings / Market Cap

Edelweiss Research Coverage Universe

Rating Distribution* 118 46 17 181

* - stocks under review

Market Cap (INR) 117 57 7

Date Company Title Price (INR) Recos

Recent Research

07-Jan-13 Westlife

Development

Inching towards a billion dollar

entity; Visit Note

199 Not

Rated

19-Dec-12 Pantaloon

Retail

FDI, rejig to drive re-rating;

Visit Note

238 Hold

12-Nov-12 Pantaloon

Retail

Missing the festive cheer;

Result Update

198 Hold

> 50bn Between 10bn and 50 bn < 10bn

Buy Hold Reduce Total

Rating Interpretation

Buy appreciate more than 15% over a 12-month period

Hold appreciate up to 15% over a 12-month period

Reduce depreciate more than 5% over a 12-month period

Rating Expected to


Retail

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