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 Analysis

High growth potential with proven track record 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

Stable Share Price: 500114's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.9%

500114

-4.0%

IN Luxury

-3.9%

IN Market


1 Year Return

-22.1%

500114

-28.9%

IN Luxury

-32.2%

IN Market

Return vs Industry: 500114 exceeded the Indian Luxury industry which returned -27.2% over the past year.

Return vs Market: 500114 exceeded the Indian Market which returned -30.7% over the past year.


Shareholder returns

500114IndustryMarket
7 Day-7.9%-4.0%-3.9%
30 Day-31.6%-29.0%-26.8%
90 Day-24.3%-28.4%-31.7%
1 Year-21.7%-22.1%-28.3%-28.9%-30.8%-32.2%
3 Year80.1%77.6%-2.5%-4.9%-19.5%-23.8%
5 Year121.2%115.3%34.3%29.5%-10.0%-14.9%

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?

50.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500114 (₹862.7) is trading above our estimate of fair value (₹259.62)

Significantly Below Fair Value: 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 (50.8x) compared to the Luxury industry average (8.1x).

PE vs Market: 500114 is poor value based on its PE Ratio (50.8x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 500114 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: 500114 is overvalued based on its PB Ratio (12.6x) compared to the IN Luxury industry average (0.4x).


Next Steps

Future Growth

How is Titan forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

22.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500114's forecast earnings growth (22.7% per year) is above the savings rate (6.5%).

Earnings vs Market: 500114's earnings (22.7% per year) are forecast to grow faster than the Indian market (19.2% per year).

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

Revenue vs Market: 500114's revenue (15.8% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: 500114's revenue (15.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500114's Return on Equity is forecast to be high in 3 years time (26.2%)


Next Steps

Past Performance

How has Titan performed over the past 5 years?

17.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500114 has high quality earnings.

Growing Profit Margin: 500114's current net profit margins (7.1%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: 500114's earnings have grown by 17.5% per year over the past 5 years.

Accelerating Growth: 500114's earnings growth over the past year (10.5%) is below its 5-year average (17.5% per year).

Earnings vs Industry: 500114 earnings growth over the past year (10.5%) exceeded the Luxury industry 7.5%.


Return on Equity

High ROE: 500114's Return on Equity (24.7%) is considered high.


Next Steps

Financial Health

How is Titan's financial position?


Financial Position Analysis

Short Term Liabilities: 500114's short term assets (₹111.3B) exceed its short term liabilities (₹71.9B).

Long Term Liabilities: 500114's short term assets (₹111.3B) exceed its long term liabilities (₹11.7B).


Debt to Equity History and Analysis

Debt Level: 500114's debt to equity ratio (60.4%) is considered high.

Reducing Debt: 500114's debt to equity ratio has increased from 9.2% to 60.4% over the past 5 years.

Debt Coverage: 500114's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 500114's interest payments on its debt are well covered by EBIT (67.2x coverage).


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 3x debt).


Next Steps

Dividend

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

0.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 500114's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 500114's dividend (0.58%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

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 (29.4%), 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 (36.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

C. Venkataraman (58yo)

0.50

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Dinesh Shetty
General Counselno data₹8.16mno data
C. Venkataraman
MD & Additional Director0.50yr₹7.06mno data
S. Subramaniam
CFO & Head of IT Function9.08yrs₹22.50mno data
S. Kant
Executive VP of Corporate Communications and CEO of Watches & Accessoriesno data₹5.31mno data
Raj Narayan
Chief Human Resource Officerno datano datano data
V. Raj
Senior Vice President7yrs₹3.99mno data
Sandeep Kulhalli
Senior Vice President of Retail & Marketing - Tanishqno data₹3.73mno data
Ajoy Chawla
Chief Executive Officer- Jewelleryno data₹3.66mno data
Arun Narayan
Head of Heliosno data₹3.04mno data
S. Ghai
Regional Business Head of West and Associate Vice Presidentno data₹3.06mno data

7.0yrs

Average Tenure

59yo

Average Age

Experienced Management: 500114's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
C. Venkataraman
MD & Additional Director0.50yr₹7.06mno data
Hema Ravichandar
Non Executive Independent Director11.08yrs₹7.03mno data
Bhaskar Bhat
Non-Executive Non-Independent Director0.50yr₹98.69m0.015% 113.8m
Noel Tata
Vice-Chairman of the Board1.92yrs₹340.00k0.0053% 40.4m
B. Santhanam
Independent Director1.92yrs₹3.90mno data
Ireena Vittal
Non Executive Independent Director7.25yrs₹7.03mno data
N. Muruganandam
Non-Executive Non-Independent Chairman1.08yrsno datano data
Ashwani Puri
Non-Executive Independent Director3.92yrs₹6.80mno data
V. Roy
Non-Executive Non-Independent Nominee Director1.42yrs₹979.25kno data
Pradyumna Vyas
Independent Director1.08yrs₹384.33kno data

1.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 500114's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹765.893b
  • 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: Watches, Jewellery, Eyewear, and Others. The company offers watches under the Titan Edge, Titan Raga, Nebula, Octane, HTSE, Zoop, Sonata, Favre-Leuba, SF, Xylys, World of Titan, and Helios brands. It also provides jewelry, including pendants, rings, bracelets, earrings, gold watches, and gold and diamond jewelry under the Mia, Caratlane, Tanishq, and Zoya brands; and bags, belts, sunglasses, helmets, wallets, and watches under the Fastrack brand, as well as Tommy Hilfiger, Police, Annie Klein, Kenneth Cole, Coach, and Lee Cooper licensed brands. In addition, the company retails watches under the Helios brand; and optical products, such as a range of frames, prescription eyewear, contact lenses, and sunglasses under the Titan EyePlus brand, as well as Fastrack and Glares brands. Further, it provides a range of perfumes for men and women under the SKINN brand; and sarees under the Taneira brand, as well as engages in the precision component manufacturing and designing, and automation machines manufacturing activities for the aerospace and defense industries. The company offers its products through retail stores and dealers, as well as online. As of March 31, 2019, it operated 1,595 stores with approximately 2.05 million square feet of retail space. The company was formerly known as Titan Industries Limited and changed its name to Titan Company Limited in August 2013. Titan Company Limited was founded in 1984 and is based in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 12:49
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.