Set up bear-put spread on Titan stock this week
Maximum loss will be the premium paid03-04-2021
Gladiator Stocks - Titan Company: ICICI Direct
According to ICICI Direct, Buy Titan Company in the range of Rs 1465.001490.00 for target price of Rs 1675.00 with stop loss of Rs 1378.00. Time Frame: Six months30-03-2021
Titan Company Limited - 500114 - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate
Intimation towards loss of Share Certificate under Regulation 39(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 201522-03-2021
Titan Company Limited - 500114 - Closure of Trading Window
Intimation of Closure of Trading Window22-03-2021
Titan’s recovery may have to face-off with future lockdown measures
Titan is next only to TCS in the Tata stable in terms of market cap. In fact, Titan’s market capitalization is more than Tata Power, Tata Chemicals, Tata Consumer and Tata Elxsi all put together. After creating a new pecking order in the Indian watch industry, overtaking Allwyn and HMT and later foraying into underpenetrated jewellery, eyewear, perfumes, and lately traditional sarees segment, Titan has transformed into a lifestyle behemoth. Engaging consumers with both its mass appeal and premium lure, the company has established well-known brands like Sonata, Timex, Raga, Tanishq, Fastrack, Titan eyeplus, Zoya, Mia and Skinn. As on 31st December 2020, the company had a strong network of 1,854 stores across 292 towns and cities in India. The stock has more than doubled from its 52-week low touched last year in March 2020. Quick Takes: Titan has added 14 stores year-to-date (YTD) and will end the fiscal by taking the store addition tally between 30-34 The management aims to give higher precedence to its core business, scaling down its Favre Leuba globally and exiting from Montblanc India JV Subsidiary Cartlane has recently incorporated a wholly owned subsidiary, ‘StudioC Inc.’ in USA to carry on the business of jewellery retailing Customers have gone basic with gold, preferring gold coins, bars and plain gold jewellery during the pandemic, as a result demand of studded jewellery declined, impacting gross margins As vaccines rollout globally and economic outlook improves, gold’s reputation as a safe haven has lost some of its sheen and its price declined from the highs of 2020 Jewellery business spurs recovery in FY21 From Rs 218 crore in 2002-03, Titan’s market capitalization has multiplied more than 600 times over the past two decades. Tanishq is the reason for this resounding success - not a big surprise, considering India’s gold addiction. It was still an uphill battle at first, and the company found it tough to break traditional buying habits of Indian households highly loyal to family jewellers. Innovative marketing efforts like inviting customers to check the purity of their gold ornaments worked, and an array of exclusive designs and strong brand resonance gradually lured in the higher middle-class, affluent and salaried consumers. Jewellery segment revenues have grown at a CAGR of 24%, higher than the growth in overall revenues of Titan, at 20% over the past 15 years. The proportional revenue mix also shifted towards jewellery moving from roughly 50% in fiscal 2006 to 83% in FY20. In fact, in the latest Covid recovery phase, the jewellery business posted 16% growth contributing 85% of the total December FY21 revenues. The other two segments, watches and eyewear, put in 8% and 2% respectively along with 5% contribution from Taneria (saree) and the fragrances business. The quick recovery in the jewellery business in FY21 is attributed to consumer behaviour. Gold touched its peak at Rs 56,000 per 10 gm in August 2020. Fearing a further rise in price, customers bought gold coins, bars and plain gold jewellery. Gold investment was also preferred as stock markets slumped and economic uncertainty deepened. Higher wallet share was allocated to gold and jewellery as wedding expenditure, as travel and other spends were curtailed by Covid restrictions. The recovery was also helped by various digital initiatives used by the company like video selling, augmented and virtual reality forging. For instance, Titan rolled out endless aisles across all its Tanishq stores, where customers have access to large touchscreens to browse the collection. Titan’s subsidiary CaratLane offers a Try@Home service to customers and this facility has now been extended to other jewellery brands as well. While the jewellery business ramped up quickly spurred by unusual Covid tailwinds, watches and eyewear have been recovering at a slower pace. For watches & wearables, the management is expecting a 100% recovery by Q4 FY21. But the eyewear business, launched approximately 15 years back, is yet to make a sizable revenue contribution. Titan’s management has tried to turn the segment around by reducing customer discounts, marginalising unproductive channels, and a higher focus on in-house brands. Managing Director CK Venkataraman said that recovery in business will occur in FY23. He added, “I'm confident that we are looking at double-digit EBIT margin and certainly a very attractive return on capital”. In the jewellery segment, in addition to strong performance by coins and plain gold jewellery, studded jewellery has recovered recording 16% growth YoY in the month of January. Wedding jewellery has also grown on the same lines and overall retail jewellery growth is a robust 28% in January 2021. In March quarter FY20, Titan had given guidance of delivering growth by Q4 FY21, and that target has been achieved a quarter in advance. What needs to be seen is whether the earlier guidance of doubling jewellery revenues by 2023 stands good. With the global economy recovering and gold off 2020 highs, growth is definitely in play. FY21 saw revenues plunge, and then return to growth Reverting back to growth in December quarter FY21, Titan reported healthy numbers supported by strong festive season recovery reported by the jewellery segment. Revenue from operations rose 17% YoY, at Rs 7,619 crore in Q3 FY21 compared to Rs 6,527 crore, a year ago. Operating profit came in at Rs 848 crore in December quarter FY21 rising 12% YoY. Operating margins were 11.13%, contracting 50 bps YoY. Margins were impacted by lower sales of studded jewellery. Net profit or PAT was Rs 525 crore in Q3 FY21 compared to Rs 475 crore same period previous year rising 11% YoY. Venkataraman said that Titan reported its highest ever quarterly profits amidst the Covid pandemic. Pandemic impacted footfalls into stores, leading to losses Titan reported net loss of Rs 291 crore with 62% revenue decline in June quarter FY21. Clarifying in Q1 FY21 post earnings call, Venkataraman had said, “The first time in maybe 15 years we made a loss, but the world is in a very different place”. The company suffered complete loss of sales in the month of April due to lockdown with its stores reopening from the first week of May. Discretionary in nature and belonging to ‘touch-and-feel’ category, the company’s jewellery, watches & wearables and eyewear businesses reported huge losses in the June quarter. Jewellery revenue fell 71% YoY as peak wedding season and Akshaya Tritiya festival was impacted by Covid-19 and high gold prices rising from the past one year. The December quarter FY21 came with festive resurgence and pent-up wedding demand, leading to the jewellery segment returning back to growth. The other two segments came within distance of posting a full recovery. Whether this continues to play out over FY22 is something that will be keenly watched by investors. However, with threats of lockdowns due to a spike in new infections of COVID19, these hopes might be dashed if new lockdowns are imposed in larger cities.19-03-2021
Titan Company Ltd - 500114 - Compliances-Reg. 39 (3) - Details of Loss of Certificate / Duplicate Certificate
Intimation towards issue of Duplicate Share Certificate under Regulation 39(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 201518-03-2021
Titan Company Ltd - 500114 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Schedule of Analyst/ Institutional Investor Meetings18-03-2021
Titan Company Limited - 500114 - Announcement under Regulation 30 (LODR)-Investor Presentation
Presentation at Citi Research India: Watches and Wearables18-03-2021
Jewellery stocks lose sheen amid renewed Covid-19 restriction, muted demand
Jewellery stocks: With gold prices bottoming out and demand facing headwinds, analysts expect volatility in the jewellery space to continue. That said, they stay optimistic on Titan & Kalyan Jewellers17-03-2021
Titan Company Limited - 500114 - Announcement under Regulation 30 (LODR)-Credit Rating
Credit Rating upgrade from AA+ (positive) to AAA with stable outlook by ICRA16-03-2021