(1/13)
About:
Titan was incorporated in 1984 as a joint venture between the Tata group & Tamil Nadu Industrial Development Corporation Ltd (TIDCO). Titan is the market leader in both its core segments, watches, and branded jewellery.
Tata group has 25% of Titan’s Equity share.
About:
Titan was incorporated in 1984 as a joint venture between the Tata group & Tamil Nadu Industrial Development Corporation Ltd (TIDCO). Titan is the market leader in both its core segments, watches, and branded jewellery.
Tata group has 25% of Titan’s Equity share.
(2/13)
Brands:
Titan's brand portfolio includes Titan, Sonata, Fastrack, Raga, Xylys, Favre Leuba & Nebula for watches
Tanishq, Mia, Carat Lane & Zoya for jewellery
Its other business include precision engineering, prescription eye wear, accessories, fragrances & ethnic wear.
Brands:
Titan's brand portfolio includes Titan, Sonata, Fastrack, Raga, Xylys, Favre Leuba & Nebula for watches
Tanishq, Mia, Carat Lane & Zoya for jewellery
Its other business include precision engineering, prescription eye wear, accessories, fragrances & ethnic wear.
(3/13)
Q4FY22 company numbers have missed the estimates as it’s main business of jewellery hits topline growth.
Titan reported a 7.2% fall in its YOY net profit to ₹491 crore for the quarter ended March, which was sharply below analysts' estimate of ₹618 crore.
Q4FY22 company numbers have missed the estimates as it’s main business of jewellery hits topline growth.
Titan reported a 7.2% fall in its YOY net profit to ₹491 crore for the quarter ended March, which was sharply below analysts' estimate of ₹618 crore.
(4/13)
Growth Drivers:
Market Giant in Watches & Jewellery-
Titan has a strong store network in jewellery and watch segments with 444 stores in jewellery segment (includes Tanishq, Zoya and Mia), 138 for CaratLane and 843 stores for watches as on March 31, 2022.
Growth Drivers:
Market Giant in Watches & Jewellery-
Titan has a strong store network in jewellery and watch segments with 444 stores in jewellery segment (includes Tanishq, Zoya and Mia), 138 for CaratLane and 843 stores for watches as on March 31, 2022.
(5/13)
Titan has gold on loan & other bank debt liabilities of over ₹5579crore (₹4272 crore in FY21) and liquidity of over ₹1800 crore. The increase in debt in fiscal 2022 is attributed to higher inventory for festivities and build-up of diamond inventory.
Titan has gold on loan & other bank debt liabilities of over ₹5579crore (₹4272 crore in FY21) and liquidity of over ₹1800 crore. The increase in debt in fiscal 2022 is attributed to higher inventory for festivities and build-up of diamond inventory.
(6/13)
Operating Margin:
Titan has healthy operating efficiency of over 10% over fiscals 2018 to 2022. Looking into the recent quarter of Q4FY22, the company has felt the pressure of rising RM prices as the OPM fell from 14% to 10% QOQ.
However the numbers are still healthy.
Operating Margin:
Titan has healthy operating efficiency of over 10% over fiscals 2018 to 2022. Looking into the recent quarter of Q4FY22, the company has felt the pressure of rising RM prices as the OPM fell from 14% to 10% QOQ.
However the numbers are still healthy.
(7/13)
Titan has a strong control over its operations and in house manufacturing and efficiency in the management of working capital.
The company also has a good hedging mechanism. This helping it to keep its OPM in double digit.
Titan has a strong control over its operations and in house manufacturing and efficiency in the management of working capital.
The company also has a good hedging mechanism. This helping it to keep its OPM in double digit.
(8/13)
Reasons for weakness:
• Covid Wave in January:
This led to the temporary closure of many of its stores along with less running time due to curfew restrictions. Titan’s jewellery business, which is its largest segment took the biggest hit. As the demand of gold fell.
Reasons for weakness:
• Covid Wave in January:
This led to the temporary closure of many of its stores along with less running time due to curfew restrictions. Titan’s jewellery business, which is its largest segment took the biggest hit. As the demand of gold fell.
(9/13)
• Shifting preference towards Gold Bonds for Safe investments:
The rising awareness towards SGB bonds for investments can lead to a long term fall in demand for Gold Jewellery for long term investments purpose. As SGBs have greater advantage then carrying physical gold.
• Shifting preference towards Gold Bonds for Safe investments:
The rising awareness towards SGB bonds for investments can lead to a long term fall in demand for Gold Jewellery for long term investments purpose. As SGBs have greater advantage then carrying physical gold.
(10/13)
• Govt Regulations related to Gold:
Since India imports a ton of Gold, it is highly regulated especially during the times of High fiscal deficit as we are facing right now.
Back in 2014, when India’s fiscal deficit rose, we witnessed a curb on the import of gold.
• Govt Regulations related to Gold:
Since India imports a ton of Gold, it is highly regulated especially during the times of High fiscal deficit as we are facing right now.
Back in 2014, when India’s fiscal deficit rose, we witnessed a curb on the import of gold.
(11/13)
So points to keep an eye on :
• Regulatory Changes which impact the supply side on the jewellery business
• Pressure on OPM due to rising RM prices
• Shifting preference for SGB for Gold investments
So points to keep an eye on :
• Regulatory Changes which impact the supply side on the jewellery business
• Pressure on OPM due to rising RM prices
• Shifting preference for SGB for Gold investments
(12/13)
Shareholding Pattern:
• Promoters - 52.90%
• FIIs - 18.40%
• DIIs - 10.21%
• Public - 18.33%
Shareholding Pattern:
• Promoters - 52.90%
• FIIs - 18.40%
• DIIs - 10.21%
• Public - 18.33%
(13/13)
What are your thoughts regarding the headwinds which Titan is facing?
@caniravkaria @stockifi_Invest @kuttrapali26 @aparanjape
What are your thoughts regarding the headwinds which Titan is facing?
@caniravkaria @stockifi_Invest @kuttrapali26 @aparanjape
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