Titan – Shine

Titan Company Limited is an Indian company which primarily manufactures fashion accessories particularly as jewellery, watches and eyewear. The company belongs to the Tata Group and it commenced as a joint venture with the TIDCO. The company has its corporate headquarters in Bangalore and registered office in Hosur, Tamil Nadu.

Titan company established its operations in 1984 under the name of Titan Watches Limited. In 1994, the company diversified into jewellery with Tanishq and eventually into eyewear with Titan Eyeplus. In 2005, the company opened its youth fashion accessories brand Fastrack. Titan is the biggest branded jewellery creator in India with greater than 80% of their total revenues being achieved from the jewellery segment. As of 2022, Titan owns a 6% market share in India’s jewellery market. Globally as of 2019, the company is the 5th largest watch manufacturer in the world.

Titan company registered a 40% growth in its consolidated net profit on a Year-on-Year basis at Rs 736 crore for the last quarter of the previous fiscal year Q4FY23.

The company’s total consolidated revenues from operations were reported at Rs 10,360 crore which is a growth of 33% on a Year-on-Year basis.

Titan has claimed a spot in the top 5 smartwatch companies by market share in India. EBIT for the segment came in at ₹98 crore, while clocking an EBIT margin of 11.3%.

The jewellery business segment has grown by 24% to Rs 7,576 crore in the last quarter. The Indian business segment has grown by 21%.

The wedding business segment witnessed a revival having growth rates similar to the total retail sales growth.

The watches and wearables business segment registered a total income of Rs 871 crore which is a massive enhancement of 40%. It has been supported by rigid growth in the analogue watches segment and a legionnaire increase in wearables segment. The business has achieved a highlight of higher than Rs 5000 crore of annual uniform consumer price (UCSP) retail sales and total sales greater than 1 million- smartwatches.

The EyeCare business segment registered a revenue growth of 25% at Rs 165 crore.

The emerging business segment revenue was computed at ₹77 crore.

It comprises fragrances, fashion accessories (F&FA) and Indian dress wear segment has grown by 31%. The sarees segment Taneria has multiplied growth by 200%.

The company’s board has recommended a dividend of ₹10 per equity share of ₹1 each which shall be paid on or after the seventh day from the conclusion of the 39th Annual General Meeting subject to the approval of the shareholders of the company.

Titan Weekly Candlestick Chart on Sharekhan’s TradeTiger

Titan stock price has returned to the distribution zone which is marked by the orange box. The price has a high probability of attempting a breakout which might take the stock to higher levels. The price faces resistance as it is along the current distribution zone is along the 261.8% retracement level. A breakout at this level would lead the stock to the 423.6% retracement level at Rs 3555. However, if the stock fails to make a breakout, we can observe the price falling down to the lows of Rs 2300.

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