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Titan Stock Analysis

Titan Overview

Titan is part of prestigious Tata Group of Companies. As of now it is largest Consumer company of the Group. Titan deals in Luxury Consumer items like Watches , Jewellery, Eye Wear, Fragrances and Smart Watches.

The Watches segment was the first one company started with. With time it ventured into other sectors as well. For example the Jewellery sector was next into which the company entered. Recently it planned to enter the Smart watch segment as well.

Below are the brands from Titan to help you recognize and understand the reach of the company

The luxury items demand in India will be on positive side as the Economy and money in hands of middle class increases. Watches have now become more of Luxury items instead of necessity they once were.

Now lets see how the company has performed over the years for investors.

Titan Share Price Performance

Below graph shows performance of the stock for last 16 years. The long period removes any fluctuations due to market issues like in year 2008. It will give you good idea how much return Company has made for the  investors.

Titan Share Price Performance 2018
Titan Share Price Performance 2018

As you can see above Titan has been a multi bagger. Over the 16 year period it has moved from 4 INR to above 900. This is more than two hundred times return in this short span of time.

The dividend rate is also good. It has been consistent dividend payer. So investors are getting double benefit of decent dividend coupled with increase share price. The dividend yield on price of 2002 is staggering.

The company does not have major slump in share price during this long years. It has been consistent performer for more than one decade. The company is also expanding its reach into new segments.

Titan My Opinion

Titan has every thing going for it from investor point of view. It is operating in Luxury Goods items which will perform well in future. The expending power of Middle class will increase with growing economy of India. This will propel demand of items catered by Titan.

Recently the problems in companies of Jewellery sector will benefit Titan. Tata Group Companies are seen as standard for transparency and management. So people will prefer the Tanishq brand over the other company brands.

Rakesh Jhunjhunwala has also invested in this company. In fact it is one of the three Crown Jewels of his portfolio. It is the largest company operating in Jems and Jewellery , Watches segment in India. This monopoly will help it in future as well.

I would recommend tracking this company and follow it closely. It is in my own watch list as well and willing to monitor it closely.

Conclusion

Every one wants a good company operating it growth sector with proven management. These are qualities of a good company poised for Growth. Titan has all the boxes ticked. It has performed well in past which shows the potential of the company.