Titan Company Ltd share Price Today

Titan Industries has undergone significant price/time correction over past eighteen months and in current context stock has resolved out of past four month consolidation (2626-2270) along with falling channel breakout in Nifty signalling resumption of uptrend
 
Structurally, share price retraced July-October 2022 rally (1825-2791) by just 50% over past six months. Slower pace of retracement of rally indicate inherent strength. Further share price held its long term rising 52-week ema twice during January and March 2023 period despite elevated gold prices highlighting resilience
 
We expect share price to challenge life highs and head towards ₹2900 as it is 123.6% retracement of November 2022-March 2023 decline (₹ 2791-2321) over next few months

Titan has transformed itself from being a watch maker into an enviable lifestyle company, having a strong fortress in the jewellery segment (90% of sales) under the Tanishq brand. Robust performance in challenging times reaffirms our thesis of long term market share gains for Titan (targeting 10% market share in near term from current 7%). 
 
Titan in its Q4FY23 pre quarterly update reported a strong show with double digit revenue growth across all divisions on a marginally favourable base due to impact of Omicron in the base quarter. Revenue for the Jewellery division (including carat lane) in Q4FY23 grew 23.6% YoY driven by buyer growths, both new and repeat, and higher ticket size. On three-year CAGR basis (excluding bullion sales), revenue growth continues to be impressive at 25%. CaratLane (72% owned Subsidiary) continues to scale to new highs with robust growth of 56% YoY in Q4FY23. Watches and wearables division registered strong growth of 41% on YoY basis led by strong traction in analog watches segment and tripling of revenues from wearables segment.

For FY23, Jewellery division (including CaratLane) has displayed an impressive show with growth ~ 39% YoY. Titan has been a secular growth story with consistent market share gains from the unorganized players.  Over a long term company aspires to grow jewellery revenues by 2.5x by FY27 (implied CAGR: 20% from FY22 base

Gems & Jewellery company Titan Company announced Q1FY25 results:

• Jewellery: Total Income for the quarter grew 9% over Q1FY24 to Rs 9,879 crore. The India business grew 8% in the same period. EBIT at Rs 1,103 crore came at a margin of 11.2% for the quarter.
• Watches & Wearables: Business recorded a Total Income of Rs 1,021 crore, up 15% over Q1FY24. The domestic business grew 14% in the same period. EBIT came in at Rs 115 crore clocking a margin of 11.3% for the quarter.
• EyeCare: Total Income of Rs 209 crore in Q1FY25 grew 3% over Q1FY24. Business recorded an EBIT of Rs 20 crore clocking a margin of 9.6% for the quarter.
• Emerging Businesses: The Emerging Businesses comprising of Indian Dress Wear ('Taneira'), Fragrances, Fashion Accessories (F&FA) recorded a Total Income of Rs 80 crore for Q1FY25 growing 5% over Q1FY24 (excluding the discontinued belts and wallets sub-segment, comparable growth was 13% over Q1FY24). The Businesses together recorded a loss of Rs 26 crore for the quarter.
• The International Jewellery business recorded a growth of 92% to Rs 350 crore compared to Q1FY24. In the preceding 12 months, 8 new Tanishq stores have opened in various geographies. These include 4 stores in GCC region, 3 stores in North America and 1 st ore in Singapore.

CK Venkataraman, Managing Director of the Company stated that: "In the recently presented Union Budget, the custom duty on gold imports in the count ry has been reduced from 15% to 6%. This development has long term positive implications for the Jewellery industry. While this change is likely to entail a short-term impact in the form of value loss on duty paid gold inventory (expected to be expensed over the next two quarters), we remain optimistic on the longer-term benefits as it makes the market equitable for large businesses like ours.

Our first quarter performance reflects mixed consumer trends in lifestyle categories. While the inclement weather conditions during the summers, general elections and lower wedding days impacted retail walk-ins, the growth metrics in Watches & Wearables and EyeCare were quite healthy. Notwithstanding some of these nearterm variations, Titan is steadfastly pursuing market share gains across all business cat egories and is well equipped to provide a differentiated retail experience to our valued customers. We remain optimistic about our performance for rest of the financial year."

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