Titan turned 1 lakh into 8.8 Crore; Tata Group; Should you invest ?

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Company Snapshots

  • Titan Company Ltd is among India’s most respected lifestyle companies.
  • It was founded in 1984 as a joint-venture between TATA Group and Tamilnadu Industrial Development Corporation 
  • It has established leadership positions in the Watches, Jewellery and Eyewear categories.
  • It has brands such as SKINN, Fastrak, Titan Eye+, Tanishq, Sonata, etc

Titan

Revenue Breakup

  • Jewellery (90%)- 7% market share in the Jewellery market, Brand Outlets across its brands Tanishq, Mia, Zoya and Caratlane.
  • Watches  (7%) – It owns brands like TITAN, FASTRACK, Sonata, Anne Klein etc
  • EyeCare (1%)– It owns Fastrack and Titan Eye+ brands
  • Perfumes (2%) -Skinn is famous brand by Titan.

Fundamental Analysis

Key Ratios

Market Cap ₹ 3,06,189 Cr.
Current Price ₹ 3,449
High/Low ₹ 3,887 / 2,882
Stock PE 87.5
Industry PE 27.2
ROCE 22.70%
ROE 32.90%
PEG Ratio 4.33
Debt To Equity  1.65

Financial Trend

Revenue: 5  Year Comparison

  • 2020: 21,052 crore
  • 2024: 51,084 crore
  • 5 Year Percentage change: 142.68 %

Net Profit: 5 Year Comparison

  • 2020: 1,501 crore
  • 2024: 3,496 crore
  • 5 Year Percentage change: 132.91 %

Shareholding Pattern

Change in Shareholding Pattern

Mar-23 Jun-24 1 Year Change 
Promoters  52.90% 52.90% 0.00%
FIIs  17.51% 18.21% 0.70%
DIIs  11.23% 10.68% -0.55%
Government 0.17% 0.19% 0.02%
Public  18.19% 17.94% -0.25%

Stock Price Returns

1 Year Stock Returns

  • Titan Ltd. has given 1 Year returns of 13.57 %
  • 1 Lakh invested in July 2023 would have become 1.13 Lakhs in July 2024

5 Year Stock Returns

  • Titan Ltd. has given 5 Year returns of 216.13 %
  • 1 Lakh invested in July 2020 would have become 3.16 Lakhs in July 2024

20 Year Stock Returns

1 lakh into 8.8 Crore in 20 years

  • Titan Ltd. has given 20 Year returns of 80,057.62 %
  • 1 Lakh invested in July 2003 would have become 8.8 Crore in July 2024

1 lakh into 8.8 Crore

Company Valuation

  • Current PE- 87.5
  • Median PE- 87.2
  • Company is Fairly Valued: As the Current PE is equal to Median PE, so we can say that Titan is fairly valued company. When we compare it with the Industry PE then it is overvalued. When we look at the business in which Titan is then we can say that PE has been always on a higher side when compared with the Industry PE. 

Should you Invest ?

  • Titan is a fundamentally strong company under the name of Tata.
  • It has impressive ROCE =22.7 % & ROE= 32.9%
  • Great investor Rakesh Jhunjhunwala made his fotrune from Titan stock itself.
  • Titan, a Tata Brand which is primarily into the Jewellery business & 90% of the revenue comes from the it& that too when Titan has 7% market share in the jewellery sector & majority of the market is yet to tapped so it has huge potential in the Indian Market.
  • Looking at the current market cap of 3lakh Crore & it is not yet saturated, Titan have the potential to become double in next 3 years by looking at the increasing all time high revenue & net profit
  • With the current price of Rs. 3,449, investors can invest in this company as the valuation is fair at this point & the Jewellery demand is always on the higher side when it comes to India.

Check Out this- Voltas, a Tata Brand on the rise

Disclaimer

  • Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
  • This article is a complete guide about Titan Limited.
  • These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
  • Also, We have talked in detail about the share’s future prospects and growth potential.
  • Hopefully, this information will help you in your further investment.
  • If you have any further queries, please comment below. We will be happy to answer all your questions.
  • If you like this information, share the article with as many people as possible

 

 

 

 

 

 

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