Titan Q2FY22 preview: Street expects 80% jump in revenue

Titan will be reporting its Q2FY22 earnings on Wednesday. The stock is higher by almost 11-12 percent since that Titan Q2 update has come. At 83x the street believes that the valuations are punchy.

Jewellery business revenue is likely to grow by 78 percent, watches 73 percent and eyewear 74 percent. This accounts for majority of the company's business so club all of this together, the company witnessed a strong comeback in the second quarter.

Sales are close to or above pre-pandemic levels in most of their divisions and they have also added 13 new Tanishq stores and 24 new Titan Eye stores.

The only thing to monitor here will be the margins because there was stronger demand for plain gold versus studded; studded is the more margin accretive business for them.

So put all those numbers together, the analysts are expecting a near 80 percent jump in their revenue, standalone revenue seen at around Rs 7,750 crore, EBITDA likely to grow on operating leverage 161 percent jump is what we are witnessing out there. That would mean margins of around that 10 percent mark, and the net profit comes in at Rs 515 crore odd.

The important thing here will be what the margins are and the outlook that the management has for the festive and the upcoming wedding season.