Titan Q4 results today. Can Rekha Jhunjhunwala's biggest stock bet deliver?

Titan Company Q4 results: Titan Company Ltd shares were trading nearly 1 per cent lower in Friday's trade ahead of the Tata group firm's March quarter results. The Rekha Jhunjhwala's biggest stock bet has fallen some 5 per cent in the last one month and if on goes by analyst estimates, the jewellery maker may post 8-10 per cent YoY jump in Q4 profit later in the day.

JM Financial expects Titan Company to report 10.2 per cent YoY rise in standalone net profit at Rs 809.20 crore against Rs 734 crore in the same quarter last year. It sees sales at Rs 10,011.90 crore, up 17.1 per cent YoY over Rs 8,553 crore in the corresponding quarter last year. Ebitda margin is seen a 11.8 per cent against 12.2 per cent YoY, down 37 basis points.

"Growth continued to be healthy led by jewellery segment. We forecast Jewellery margin to be within management guidance of 12-13 per cent; watches margin estimate at 9.2 per cent. Commentaries on exit-growth and consumer sentiments remain key," it said.

On Friday, the stock was down 0.72 per cent at Rs 3,543.85. Rekha Jhunjhunwala held 5.37 per cent stake in Titan Company, which was worth Rs 16,864 crore in Friday's trade.

Kotak Institutional Equities sees Titan clocking 8.7 per cent YoY rise in profit at Rs 797.60 crore. It sees sales rising 4.3 per cent YoY to Rs 10,123 crore.

"We expect standalone jewelry EBIT margin of 12.8 per cent. We estimate 40 bps YoY decline in jewelry EBIT margin (despite cut in franchise commissions) on account of rationalisation of gold rate mark-up, aggressive exchange offers and marginal decline in studded share. We note that Tanishq took some price corrective actions in Solitaires, but it's contribution to top-line is low and hence impact on overall margin is limited," it said.

Titan Company's  FY2024 jewelry EBIT margin guidance band was 12-13 per cent. Kotak estimates 9.9 per cent EBIT margin for watches and 7.2 per cent EBIT margin for eyewear in 4QFY24.

Analysts said the store addition momentum at Titan Company may continue while same store sale growth (SSSG) is likely to decline to mid single digit, impacted by challenging demand scenario.