BSE:500114

Stock Analysis Report

Executive Summary

Titan Company Limited, together with its subsidiaries, manufactures and sells watches, jewelry, eyewear, and other accessories and products in India and internationally.

Snowflake

Fundamentals

Outstanding track record with high growth potential and pays a dividend.


Similar Companies

Share Price & News

How has Titan's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.8%

500114

-0.02%

IN Luxury

1.6%

IN Market


1 Year Return

54.6%

500114

7.7%

IN Luxury

0.8%

IN Market

Return vs Industry: 500114 exceeded the Indian Luxury industry which returned 7.7% over the past year.

Return vs Market: 500114 exceeded the Indian Market which returned 0.8% over the past year.


Shareholder returns

500114IndustryMarket
7 Day-0.8%-0.02%1.6%
30 Day11.2%5.5%1.5%
90 Day12.0%3.9%-3.3%
1 Year55.3%54.6%8.6%7.7%2.7%0.8%
3 Year228.4%224.0%49.5%47.8%22.0%16.0%
5 Year235.3%226.5%108.9%105.0%42.3%29.3%

Price Volatility Vs. Market

How volatile is Titan's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Titan undervalued compared to its fair value and its price relative to the market?

77.07x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: 500114 (₹1249.05) is trading above our estimate of fair value (₹260.63)

Significantly Undervalued: 500114 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500114 is poor value based on its PE Ratio (77.1x) compared to the Luxury industry average (10.1x).

PE vs Market: 500114 is poor value based on its PE Ratio (77.1x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: 500114 is poor value based on its PEG Ratio (3.8x)


Price to Book Ratio

PB vs Industry: 500114 is overvalued based on its PB Ratio (18.3x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Titan forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

20.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500114's forecast earnings growth (20.3% per year) is above the savings rate (7.6%).

Earnings vs Market: 500114's earnings (20.3% per year) are forecast to grow faster than the Indian market (18.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500114's revenue (16.1% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: 500114's revenue (16.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: 500114's Return on Equity is forecast to be high in 3 years time (27.9%)


Next Steps

Past Performance

How has Titan performed over the past 5 years?

18.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 500114's earnings have grown by 18% per year over the past 5 years.

Accelerating Growth: 500114's earnings growth over the past year (18.1%) exceeds its 5-year average (18% per year).

Earnings vs Industry: 500114 earnings growth over the past year (18.1%) exceeded the Luxury industry 7.8%.


Return on Equity

High ROE: 500114's Return on Equity (23.4%) is considered high.


Return on Assets

ROA vs Industry: 500114 has a higher Return on Assets than the Luxury industry average last year.


Return on Capital Employed

ROCE Improving: 500114 has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Titan's financial position?


Financial Position Analysis

Short Term Liabilities: 500114's short term assets (₹95.9B) exceeds its short term liabilities (₹54.6B)

Long Term Liabilities: 500114's short term assets (95.9B) exceeds its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: 500114's debt to equity ratio (39.3%) is considered satisfactory

Reducing Debt: 500114's debt to equity ratio has increased from 23.6% to 39.3% over the past 5 years.

Debt Coverage: 500114's debt is well covered by operating cash flow (51.9%).

Interest Coverage: 500114 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 500114 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500114's debt is covered by short term assets (assets are 4.006420x debt).


Next Steps

Dividend

What is Titan's current dividend yield, its reliability and sustainability?

0.40%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%0.6%markettop25%2.5%industryaverage0.7%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 500114's dividend (0.4%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 500114's dividend (0.4%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

Stable Dividend: 500114's dividends per share have been stable in the past 10 years.

Growing Dividend: 500114's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.9%), 500114's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500114's dividends in 3 years are forecast to be well covered by earnings (29.3% payout ratio).


Next Steps

Management

What is the CEO of Titan's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average board tenure


CEO

C. Venkataraman (58yo)

0yrs

Tenure

₹7,059,508

Compensation

Mr. C. K. Venkataraman, B.Sc., PGDM serves as Managing Director and Additional Director at Titan Company Limited from October 1, 2019 and served as the Chief Executive Officer of Jewellery of Titan Company ...


Board Age and Tenure

1.4yrs

Average Tenure

58yo

Average Age

Experienced Board: 500114's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹1,177,43920 May 19
Suparna Mitra
EntityIndividual
Shares1,000
Max Price₹1,177.44

Ownership Breakdown


Management Team

  • C. Venkataraman (58yo)

    MD & Additional Director

    • Tenure: 0yrs
    • Compensation: ₹7.06m
  • S. Kant (59yo)

    Executive VP of Corporate Communications and CEO of Watches & Accessories

    • Tenure: 0yrs
    • Compensation: ₹5.31m
  • Ronnie Talati (59yo)

    Chief Executive Officer of Eyewear

    • Tenure: 0yrs
    • Compensation: ₹3.65m
  • V. Raj (64yo)

    Senior Vice President

    • Tenure: 6.5yrs
    • Compensation: ₹3.99m
  • Sandeep Kulhalli (59yo)

    Senior Vice President of Retail & Marketing - Tanishq

    • Tenure: 0yrs
    • Compensation: ₹3.73m
  • Ajoy Chawla (52yo)

    Chief Strategy Officer and Senior VP of Strategy & Business Incubation

    • Tenure: 0yrs
    • Compensation: ₹3.66m
  • Arun Narayan (47yo)

    Head of Helios

    • Tenure: 0yrs
    • Compensation: ₹3.04m
  • Subbu Subramaniam

    CFO & Head of IT Function

    • Tenure: 8.6yrs
    • Compensation: ₹22.50m
  • Dinesh Shetty

    General Counsel

    • Tenure: 0yrs
    • Compensation: ₹8.16m
  • Raj Narayan

    Chief Human Resource Officer

    • Tenure: 0yrs

Board Members

  • Hema Ravichandar (58yo)

    Non Executive Independent Director

    • Tenure: 10.6yrs
    • Compensation: ₹7.03m
  • Noel Tata (63yo)

    Vice-Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: ₹340.00k
  • C. Venkataraman (58yo)

    MD & Additional Director

    • Tenure: 0yrs
    • Compensation: ₹7.06m
  • B. Santhanam (62yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: ₹3.90m
  • Ireena Vittal (51yo)

    Non Executive Independent Director

    • Tenure: 6.8yrs
    • Compensation: ₹7.03m
  • N. Muruganandam (52yo)

    Non-Executive Non-Independent Chairman

    • Tenure: 0.6yrs
  • Ashwani Puri (63yo)

    Non-Executive Independent Director

    • Tenure: 3.4yrs
    • Compensation: ₹6.80m
  • Ramesh Meena (54yo)

    Non-Executive Non-Independent Nominee Director

    • Tenure: 1.8yrs
    • Compensation: ₹753.08k
  • V. Roy (40yo)

    Non-Executive Non-Independent Nominee Director

    • Tenure: 0.9yrs
    • Compensation: ₹979.25k
  • Pradyumna Vyas (61yo)

    Independent Director

    • Tenure: 0.6yrs
    • Compensation: ₹384.33k

Company Information

Titan Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Titan Company Limited
  • Ticker: 500114
  • Exchange: BSE
  • Founded: 1984
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹1.104t
  • Shares outstanding: 887.79m
  • Website: https://www.titan.co.in

Number of Employees


Location

  • Titan Company Limited
  • Integrity No. 193
  • Veerasandra
  • Bengaluru
  • Karnataka
  • 560100
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500114BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1999
TITANNSEI (National Stock Exchange of India)YesEquity SharesININRNov 1999

Biography

Titan Company Limited, together with its subsidiaries, manufactures and sells watches, jewelry, eyewear, and other accessories and products in India and internationally. It operates through four segments:  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 12:36
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.