Recommendation - Buy at CMP 895 - for the Targets of 990 -1100++, Time Frame - 5 Months to 12 Months
Titan Company (Short Term Investment Mantra)
TRIGGERS :
1) Jewellery demand, margins to boost profit - YOY Profits Expected with 60% Jump
2) Inclusion of Titan in the Nifty 50 index and Only Company with Strong Fundamentals in Jewellery Sector
3) The company expects the jewellery business to end FY18 with a growth of 25 per cent, which clocked 36 per cent year-on-year growth in the September quarter (Q2)
5) Technically Multiple Breakouts and Trading Near Its 52 Week's High and Ready to Hit a Levels
6) The company has mentioned that FY17 was an exceptional year, and It expects good sales as well as margin performance (led by gross margin expansion and cost control) in Q4 . TITAN is targeting high-teens revenue growth for FY18.
7) The watches business also benefited from a regulatory change during the period, with the government lowering the goods and service tax (GST) rate on the category to 18% from 28%. The government also reduced the GST rate on sunglasses to 12% from 18% during the quarter
8) At 39.2x FY20 projected earnings, , accumulation on every dips is recommended.
9) Beneficiary of recent events being the Most Strong and Renowned brand of Jewellery Sector
Titan Company Limited, a joint venture between the TATA Group and the Tamil Nadu Industrial Development Corporation (TIDCO) commenced operations in 1984 under the name Titan Watches Limited. Titan Company is the fifth largest integrated own brand watch manufacturer in the world. Over the last three decades, Titan has expanded and explored into under penetrated markets and created leading brands across categories.
Titan Company Limited, a joint venture between the TATA Group and the Tamil Nadu Industrial Development Corporation (TIDCO) commenced operations in 1984 under the name Titan Watches Limited. Titan Company is the fifth largest integrated own brand watch manufacturer in the world. Over the last three decades, Titan has expanded and explored into under penetrated markets and created leading brands across categories.
Titan Company launched ‘Tanishq’, India’s most trusted and leading jewelry brand. Tanishq has been synonymous with superior craftsmanship, exclusive designs and guaranteed product quality. The jewellery is manufactured in a fully integrated manufacturing plant with state-of-the-art equipment. The Tanishq retail chain currently has over 200 exclusive boutiques in over 115 cities. Completing the jewellery portfolio is Zoya, the retail store in the luxury segment, and most recently, CaratLane.
Titan Company Ltd had reported a whopping 67% rise in net profit to Rs 277.93 crore for the quarter ended September 30, 2017 against Rs 165.98 crore in the corresponding quarter last year. Jewellery segment, which contributed to nearly 80% of total revenue, has registered a solid 37% growth at Rs 2,748.20 crore on year-on-year basis, with its EBIT (earnings before interest and tax) growing 66.4% YoY.
Selected as Best Employer for "National Award for the Empowerment of Persons with Disabilities - 2014" by Government of India
• Titan ranked among the 100 most sustainable corporations in Asia in the Channel News Asia Sustainability Ranking 2014.
• "Champion of Champions" award at the 8th Loyalty Summit for the Encircle Loyalty Program. 2014
• Top Indian Company award under the Gems and Jewellery Sector at the Dun & Bradstreet Corporate awards, 2014
• "Hall of Fame" award at 12th Franchisee Awards 2014 by Franchisee India
• Titan ranked among the 100 most sustainable corporations in Asia in the Channel News Asia Sustainability Ranking 2014.
• "Champion of Champions" award at the 8th Loyalty Summit for the Encircle Loyalty Program. 2014
• Top Indian Company award under the Gems and Jewellery Sector at the Dun & Bradstreet Corporate awards, 2014
• "Hall of Fame" award at 12th Franchisee Awards 2014 by Franchisee India
Titan Company Limited’s people-first approach to everything is driven by its aim to provide elevating experiences to the people they touch. This orientation has led Titan to create iconic time-pieces such as the confluence of the age-old art of watchmaking and technical mastery that defines Edge; the women-first offerings by Raga which are the epitome of grace; Nebula which is a blend of the rich heritage of Indian jewellery and the fine craftsmanship of watch making; Octane for the confident man and Regalia for special occasions.
Titan has been known to believe in creating a Titan watch for everyone. Keeping this objective in mind, Titan created ‘Sonata’, India’s largest selling watch brand, which has established itself as a brand of great quality and unbeatable value for the customer. After Sonata, Titan Company launched Fastrack in 1998 and became an independent urban youth brand in 2005. The brand has carved a niche for itself within categories such as watches and eyewear amongst the youth in the country. In 2009, Fastrack extended its footprint into accessories with a range of bags, belts and wallets. Furthermore, with a license for premium fashion watches of global brands, Titan Company repeated its pioneering act and brought International brands into the Indian market along with its own Swiss made watch Xylys.
Titan Eyeplus, the third major line of consumer business from Titan Company Ltd, offers a variety of differentiated products to the end consumer consisting of frames, lenses, contact lenses and sunglasses. Benchmarked against the best in the world, Titan Eyeplus heralds standardization in the eyewear industry.
With Titan’s recent expanse into the fragrance market in 2013, SKINN by Titan was launched, for the urban, well-travelled Indian men and women. Designed by award winner Master perfumers, the fine French fragrances from SKINN are manufactured and packaged in France. Titan has also increased its portfolio with Taneira, the latest range of handloom sarees.
Titan Company Limited has two exclusive design studios for watches and jewellery. The Design Studio is a testimonial to the creative and innovative spirit of Titan Company and is a cross-disciplinary amalgam of some of the most respected and skilled designers from across the country. Creating Pioneering, user centric designs in Watches, Jewellery and Eyewear is the core competence of the studio which makes it a unique entity in Titan Company.
Leveraging precision engineering core competencies from watch making, Titan initiated TEAL (erstwhile PED) in 2005, catering to global majors across industry verticals like aerospace, automotive, oil & gas, engineering, hydraulics, solar and medical instruments.
With a retail footprint of over 1400 stores and a total retail area of over 1.8 m sq ft, Titan Company has India’s largest specialty retail network spanning over 240 towns. Today, Titan Company Limited is TATA’s largest consumer company, and India’s leading producer and retailer of watches, jewellery, eyewear and accessories
Titan has been known to believe in creating a Titan watch for everyone. Keeping this objective in mind, Titan created ‘Sonata’, India’s largest selling watch brand, which has established itself as a brand of great quality and unbeatable value for the customer. After Sonata, Titan Company launched Fastrack in 1998 and became an independent urban youth brand in 2005. The brand has carved a niche for itself within categories such as watches and eyewear amongst the youth in the country. In 2009, Fastrack extended its footprint into accessories with a range of bags, belts and wallets. Furthermore, with a license for premium fashion watches of global brands, Titan Company repeated its pioneering act and brought International brands into the Indian market along with its own Swiss made watch Xylys.
Titan Eyeplus, the third major line of consumer business from Titan Company Ltd, offers a variety of differentiated products to the end consumer consisting of frames, lenses, contact lenses and sunglasses. Benchmarked against the best in the world, Titan Eyeplus heralds standardization in the eyewear industry.
With Titan’s recent expanse into the fragrance market in 2013, SKINN by Titan was launched, for the urban, well-travelled Indian men and women. Designed by award winner Master perfumers, the fine French fragrances from SKINN are manufactured and packaged in France. Titan has also increased its portfolio with Taneira, the latest range of handloom sarees.
Titan Company Limited has two exclusive design studios for watches and jewellery. The Design Studio is a testimonial to the creative and innovative spirit of Titan Company and is a cross-disciplinary amalgam of some of the most respected and skilled designers from across the country. Creating Pioneering, user centric designs in Watches, Jewellery and Eyewear is the core competence of the studio which makes it a unique entity in Titan Company.
Leveraging precision engineering core competencies from watch making, Titan initiated TEAL (erstwhile PED) in 2005, catering to global majors across industry verticals like aerospace, automotive, oil & gas, engineering, hydraulics, solar and medical instruments.
With a retail footprint of over 1400 stores and a total retail area of over 1.8 m sq ft, Titan Company has India’s largest specialty retail network spanning over 240 towns. Today, Titan Company Limited is TATA’s largest consumer company, and India’s leading producer and retailer of watches, jewellery, eyewear and accessories