Titan Company Limited is a luxury goods company that deals in watches, jewellery, and eyewear. It is a joint venture between the TATA Group and Tamil Nadu Industrial Development Corporation (TIDCO).
Titan Historical Share Price (NSE)
*Note: Prices that are specified above is based on INR
Titan Company Market Capitalisation
Titan Company’s market capitalisation, as of March 2018, is around Rs.73,000 crore.
Titan Company’s Wealth and Recent PerformanceQ1 FY 2018-19
The key highlights of the company’s financial performance for the Q1 FY 2018-19, ended 30 June 2018 are as follows:
- The company reported an increase of 31.4% in profit before tax (PBT) which stood at Rs.467 crore.
- The standalone profit recorded a jump to Rs.349.17 crore from Rs.266.91 crore during the same period a year ago.
- The company registered an increase of 7.40% in the revenue which stood at Rs.4,354.52 crore.
- The sales income stood at Rs.4,269 crore up from Rs.4,002 crore in Q1 FY 2017-18.
- Titan’s growth was attributed to the strong profits from its jewellery business. The company’s jewellery products are sold under the Tanishq brand. The jewellery division recorded an increase in the revenue by 5.65% and stood at Rs.3,571.66 crore. The profits from jewellery sales jumped 16.12% to Rs.393.38 crore.
- Titan’s watch division recorded an increase of 14.% and stood at Rs. 594 crore, up from Rs.517 crores for the same period in the previous year.
- Titan’s eyewear business recorded a growth of 16.4% and stood at Rs.132 crores.
- The company's other businesses comprising accessories, fragrances and sarees grew by 31.5%, to Rs.26 crores this year.
- In the Q1, the company added a total of 27 retail stores across all its businesses.
The key highlights of the company’s financial performance for the full FY 2017-18, ended 31 March 2018 are as follows:
- The company recorded a growth of 20.5% on a standalone basis while The income stood at Rs.15,655 crore.
- Titan’s standalone profit before tax (PBT) recorded an increase of 52% and stood at Rs.1,571 crore.
- The company’s standalone net profit for the year registered a growth of 52.6% and stood at Rs.1,163 crores.
- Income for Q4 registered a growth of 10.72% and stood at Rs.3,916 crore as compared to Rs.3,538 crore last year.
- Thanks to the revised gold exchange policy and successful diamond activation, Titan’s jewellery business recorded a sale of Rs.13,036 crores. The jewellery division income recorded a growth of 24.3%.
- The Watches business of the Company recorded an income of Rs.2,126 crores for FY 2017-18, registering a much higher growth than the past few years. The growth of 3.6% being reported, appears muted due to the effect of GST.
- The eyewear division recorded an income of Rs.415 crore, however, the sales for the year were almost flat over the previous year.
- Titan’s other businesses comprising accessories, fragrances and sarees registered an increase of 45.9% and as the sales stood at Rs.95 crore.
- In the FY 2017-18, Titan added a total of 114 retail stores across all divisions.
- The profit before tax of the company saw a growth of 22.1% at Rs. 423 crore, for the Q3 FY18 ending December 2017. Income from sales grew 6.1% during same period and income for the 9 month period grew by 23.3%.
- A high demand for jewellery and watches during the Diwali and Dussehra season helped the company yield a stronger quarter. Steady expansion of the watch segment has been favourable for the company’s profit.
- Meanwhile, the jewellery segment grew 15% and was the largest revenue contributor. The removal of jewellery business from the purview of PMLA (Prevention of Money Laundering Act) helped Titan report a strong quarter. On the other hand, decrease in the GST rates for watches to 18% from 28% resulted in a growth of 4.7% for this segment.
- Titan also continued expansion of their stores. As of December 31, 2017, there are a total of 1,439 retail stores.
Titan Company’s Stock Trends in 2018
- The opening price of the stock on January 1, 2018 in NSE was around Rs.900 and it kept increasing owing to a strong growth in Q3 FY2017. By the end of January 2018, the stock price was close to Rs.880. Meanwhile, the stock price on BSE during the same period was around Rs.860 and didn’t change much by the end of the month.
- In the first week of February, the stock price fell close to Rs.760 and stayed in the range of Rs.820 by the end of the month.
- The price of the stock at the beginning of March stood at Rs.814 on NSE. The scrip increased throughout the month by around 125 points and stood at Rs.937.
- In the month of April, the stock price continued to increase by around 27 points and reached Rs.970.
- The scrip declined throughout by 75 points in the month of May. By the end of the month, the stock price stood at Rs.918.
- In the month of June, the scrip was fluctuating in the first half of the month and declined further towards the end. The price of the stock at the end of June stood at Rs.826.
- The scrip reached Rs.942 by 20 August 2018. It declined towards the end of the month and stood at Rs.881.
- By 4 September, 2018 the price of the stock reached Rs.917. As on 19 September 2018, the scrip stood at Rs.818.
Titan Company’s Stock Trends in 2016 and 2017
- On January 1, 2016, the stock price on NSE and BSE was close to Rs.350 as the company announced results for Q3 2017. By the end on February, the price has reduced to Rs.330.
- The price didn’t change drastically in March and was fluctuating between Rs.340 as the company declared interim dividend.
- By end of June, the stock price was high at around Rs.390 as the company appointed a new director. In July, Titan Industries acquired a stake in Caratlane and hit a 52-week high at Rs.430.
- In early September, the stock price remained at around Rs.440 but declined by the end of the month owing to change in the directors. Towards the end of December 2016, the stock price kept falling close to Rs.320 on NSE.
- In January 2017, Titan Company’s stock price failed to pick up and was around Rs.330 following the announcement of the Q3 FY17 update. The price kept increasing steadily by the middle of the month as the price hit Rs.370.
- Thanks to a 13% increase in the net profit in Q3 FY17, the share price hit at around Rs.430 by the end of February. The share price further increased close to Rs.490 by end of the April 2017.
- Titan’s share crossed the Rs.500 mark in June as its jewellery business gained due to changes in GST reforms. The price hit at around Rs.600 in mid August and early stayed around Rs.650 by the end of September.
- In early November the share price crossed the Rs.700 mark and reached close to Rs.800 by the end of December 2017.
Should you invest in Titan Company?
- In terms of performance, the stock price has been consistently increasing at a decent pace over the years. The company has been recording profits in most of the quarters that has resulted in a growing price of share. A sharp reduction in the GST rates for making jewellery has been helpful for Tanishq to gain in terms of quarterly profits.
- Titan has been a pioneer in the watch industry for decades in terms of quality and brand name. The company also banks on the rich goodwill of the Tata Group.
- Investing in the company may be a good idea considering the consistent growth in the profits and an attractive product portfolio.
Titan is the fifth largest integrated own brand watch manufacturer in the world. It is also TATA’s largest consumer company. As mentioned earlier, the company has been successful with both of its leading brands - Tanishq (jewellery) and Fastrack (watch, eyewear and other accessories.). Meanwhile, the Titan Eye+ brand that deals in frames, lenses and contact lenses is also doing well.
History of the Company
The company started operations in 1984 under the name Titan Watches Limited. However, the name of the company was changed to Titan Industries Ltd. in September 1993. Titan forayed into the jewellery segment with Tanishq, which has been a renowned jewellery brand since its inception in 1994. The company launched Fastrack in 1998 that snowballed into an independent youth brand in 2005. Titan continued expansion of its product portfolio by entering the fragrance market with SKINN. The third major venture of consumer business by Titan Company is Titan Eye+ that was launched in 2007. In 2014, Titan and Montblanc Services B.V. Netherlands forayed into a joint venture to start operations in India to to start single brand retail trade.
Management of the Company
Bhaskar Bhat - Managing Director
An alumnus of Indian Institute of Ahmedabad (IIM), Bhaskar Bhat is the the Managing Director (MD) of the company since April 2002. He has majority of experience in the Sales and Marketing, HR and International Business department. He joined Tata Watch Project since 1983 which is now the Titan Company Ltd. Bhaskar holds a B.Tech (Mechanical Engineering) degree from IIT - Madras.
S Ravi Kant- Chief Executive Officer - Watches & Accessories & EVP Corporate Communications
Ravi joined Titan in 1988 as head of Direct Marketing and since then has taken up several roles in various departments ranging from export and retail. In addition to being the CEO and Executive Vice President of the Watch and Accessories business, Ravi also looks after the Corporate Communications of the Company. He was heading the Middle East and Africa operations of Titan International (ME) as the Managing Director till 2005 where he looked after the operations for jewellery, fragrances and watches. Ravi established the Titan Eye+ brand and is the CEO for the same.
Titan Company Limited Listing and Indices
The stocks of Titan Company Ltd. can be bought and sold on the two major stock exchanges in the country - National Stock Exchange and Bombay Stock Exchange. The codes for the same are mentioned below.
BSE - 500114
NSE - TITAN
ISIN - INE280A01028
Sector - Miscellaneous
As for the stock market indices, Titan Company Pvt. Ltd. is a part of NIFTY 50, Nifty 100, Nifty 200, Nifty 500, Nifty Next 50, S&P BSE 100, S&P BSE 200, S&P BSE 500.
Titan Company Limited
3, Sipcot Industrial Complex,
Hosur - 635126
Telephone : +91-(0)4344-664199
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