📢 5 STEPS TOWARDS WEALTH 🚀 The Indian Stock Market Way
Titan Ind CMP: 3769: Long term Sales: 19% | Q1_fy25: 23% q1_FY25 Latest result Update
Titan Company Limited {"Titan"), a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation {TIDCO), commenced its operations in 1987 under the name Titan Watches Limited. In 1994, Titan diversified into Jewellery {Tanishq) and subsequently into EyeCare. Over the last three decades, Titan has expanded into underpenetrated markets and created lifestyle brands across different product categories including fragrances {SKINN), accessories and Indian dress wear {Taneira) and thoughtfully designed Women's Bags (IRTH). Titan is widely known for transforming the watch and jewellery industry in India and for shaping India's retail market by pioneering experiential retail. The company is the largest branded jewellery maker in India, with more than 80% of its total revenues coming from the jewellery segment & market share of 8%. As of 2019, it is also the fifth-largest watch manufacturer in the world.
Strongest & the largest among discretionary consumption Segments. They have given some of the finest brands like Tanishq, Miya, Caratlane and Fastrack. Able to grow its revenue and Profit from 600 Cr and 20 Cr from the year 2000 to coming year probability may cross the landmark 50000 Cr and 4000 Cr sales and profit respectively. Hence, Titan is able to create huge wealth for investors as an investment of 1X is already 900X today along with 6X dividend received. Wealth is attracted towards growth along with quality. Revenue growth 50X = Profit Growth 1000X = Wealth = 900X. Added 325 stores last year & total stores count reaches 3075 having 4.2 million sqft of retail space makes them leading in this sector. Business is supported with a big share of 7% in Jewelry as they are the largest jewellery retailer in the country. Even their Eye Care division is India’s largest optical retail chain. Brands are from Mass markets like Sonata to midmarket like FastTrack, Titan, Caratlane, Skinn with Premium Marketlike Tanishq and even luxury markets like Favre-Leuba and Zoya. Ready to cater to all markets in India.
#### Consolidated Q1 FY25 Sales & Profit Growth
- **Total Income:** ₹13,386 crores, an increase of 11.4% YoY.
- **Sale of Products/Services:** ₹12,223 crores, an increase of 12.6% YoY.
- **Profit Before Tax (PBT):** ₹973 crores, a decrease of 2.9% YoY.
- **Profit After Tax (PAT):** ₹715 crores, a decrease of 5.5% YoY
#### Segmental Growth
- **Jewellery:** Total Income ₹9,879 crores, an increase of 8.9% YoY. EBIT ₹1,103 crores with a margin of 11.2%
- **Watches & Wearables:** Total Income ₹1,021 crores, an increase of 14.7% YoY. EBIT ₹115 crores with a margin of 11.3%.
- **EyeCare:** Total Income ₹209 crores, an increase of 3.0% YoY. EBIT ₹20 crores with a margin of 9.6%.
- **Emerging Businesses:** Total Income ₹80 crores, an increase of 5.3% YoY. EBIT -₹26 crores with a margin of -32.5%.
- **International Business:** Total Income ₹380 crores, an increase of 91.1% YoY.
#### Profit Margins
- **Gross Contribution:** ₹3,050 crores, an increase of 10.7% YoY, with a margin of 24.8%.
- **EBITDA:** ₹1,367 crores, an increase of 10.3% YoY, with a margin of 11.1%.
- **EBIT:** ₹1,203 crores, an increase of 8.3% YoY, with a margin of 9.8%..
#### Highlights and Insights of Results
- Titan experienced robust growth across several segments, particularly in international markets and emerging businesses.
- Jewellery segment faced challenges due to high gold prices, election restrictions, few wedding dates, and extreme weather.
- Watches & Wearables and EyeCare segments showed healthy growth despite adverse conditions.
- The company is optimistic about longer-term benefits from the reduction of customs duty on gold imports from 15% to 6%.
### Conclusion
Titan Company Limited showed substantial growth in total income for last several quarters. The company maintained robust financial health with improving revenue across its main business segments, strategic expansions, and new product launches. While PAT was affected due to some pressure of raw materials prices, the overall performance reflects a positive outlook for investors in the terms of demand while profits may get affected for the near term.
They add around 200 new stores each year. We may see Titan enter the elite club of 50k Cr sales just this year. This year we may see pressure in margins. Titan has many strong brands, is the leader in majority of the brands and is growing aggressively. We may see TITAN cross even the benchmark 1 lakh Cr sales till 2028. Hence, a wealth creator for the long term. All those bought during previous falls can book some 5% profits at 3898 as this was our target, new buying again can be done during any fall near 2718. Next 3 year's expected range should be 2700 to 5700. Yes, definitely a wealth creator along with consistent profitability.
Tata & Tamil Nadu Industrial Development Corporation are the Promoter with around 53% stake, while MF& Insurance companies hold around 11.3%. FPI hold around 17.5% and even Late shri Rakesh Jhunjhunwala family hold around 5.2% shares.
Disclosure: This document is not prepared for any recommendation; this is prepared for educational purposes.
