Titan Company Analysis: Stock price gets doubled every three years!

Titan Company Ltd, one of India’s most respected lifestyle companies, the shares are trading at Rs 3020 on BSE, 1.4% up from the previous day’s closing price of Rs 2976.20. It is well known for its leadership positions in the watches, jewellery, fragrance, Indian dress wear segment, and eyewear categories.

In this article, we will analyse the historical performance of Titan Company’s stock, specifically focusing on instances when the stock price doubled, with a base price of Rs 100. We will also examine the duration it took for consecutive doublings to occur.

Analysing the provided data table, we can draw several conclusions about the stock performance of Titan Company. Firstly, the stock took approximately 208 days or around half a year to double and reach Rs 200 from its base price of Rs 100. Subsequently, it took three and a half years to achieve the milestone of Rs 400. Remarkably, within just three more years, the stock surpassed Rs 800. Continuing its upward trajectory, the stock doubled again from Rs 800 to Rs 1600 in another three years. Currently, the stock is trading around Rs 3020, not yet touching the levels of Rs 3200.

The stock is getting doubled approximately every three years. Currently, the stock is trading around Rs 3020 and has not yet completed a three-year time span since its last doubling. Considering the strong trend, there is a possibility that the stock may double within or before the three-year time span, indicating the potential for further significant growth.

The stock has generated a return of 51% in the last year whereas it has generated a magnificent return of around 212% in the last three years. Its 52-week highs and lows are Rs 3030 and Rs 1827, respectively. Currently, the stock is trading at a PE of 82.5 times. The total market capitalisation of the company is Rs 2,68,106 Crore.

The promoter holding in the company is 52.90% while FIIs and DIIs hold 17.51% and 11.23% respectively.

Financial Overview

Titan Company Ltd witnessed a significant YoY increase in annual revenue during FY23, with a surge of 40.89% from Rs 28,799 Crore to Rs 40,575 Crore. Over the past three years, the company’s sales have shown a CAGR growth of 24%. The operating profit stands at Rs 4,879 Crore, resulting in an operating profit margin of 12%. Furthermore, the net profit for the company amounts to Rs 3,274 Crore, with a net profit margin of 8%. Moreover, the net profit has experienced a CAGR of 30% over the past three years.

The company’s ROCE and ROE are at 25.1% and 30.7%, respectively. As per the recent financial updates, the total debt stands at approximately Rs 9,367 Crore, resulting in a debt-to-equity ratio of 0.79 times.

Peer Comparison:

Company Overview

Titan Company Ltd is indeed one of India’s most respected lifestyle companies, known for its leadership positions in the watches, jewellery, fragrance, Indian dress wear segment, and eyewear categories. The company has built a strong reputation based on its trusted brands and differentiated customer experience. It was founded in 1984 as a joint venture between TATA Group and Tamil Nadu Industrial Development Corporation (TIDCO).

It is well known for its customer-centric approach and differentiated retail experience. It has invested in creating a seamless shopping experience through its network of exclusive brand outlets, multi-brand outlets, and online platforms. Its emphasis on customer service, product quality, and innovation has contributed to its success in building strong brand loyalty. As a part of the Tata Group, Titan Company adheres to high ethical standards and corporate governance practices.