NSE Symbol: TITAN | BSE Code: 500114
Titan is the fifth largest watch manufacturer brand and the most significant consumer company of TATA in the world. The company has been successful with both of its leading brands - Tanishq (jewelry) and Fastrack (watch, eyewear, and other accessories.). Along with it, the Titan Eye+ brand that deals in frames, lenses and contact lenses is also doing well.
The company began its operations in 1984 under the name Titan Watches Limited. However, the company's name was changed to Titan Industries Ltd. in September 1993. Titan entered into the jewelry segment with Tanishq, which has been a renowned jewelry brand since its establishment in 1994. The company launched Fastrack in 1998 that snowballed into an independent youth brand in 2005. Titan continued the expansion of its product portfolio by entering the fragrance market with SKINN. The third major venture of consumer business by Titan Company is Titan Eye+ that was launched in 2007. In 2014, Titan and Montblanc Services B.V. Netherlands forayed into a joint venture to start operations in India to single brand retail trade.
Bhaskar Bhat - MD
An alumnus of Indian Institute of Ahmedabad (IIM), Bhaskar Bhat is the Managing Director (MD) of the company since April 2002. He has the majority of experience in the Sales and Marketing, HR, and International Business department. He joined Tata Watch Project since 1983 which is now the Titan Company Ltd. Bhaskar holds a B.Tech (Mechanical Engineering) degree from IIT - Madras.
S Ravi Kant- Chief Executive Officer - Watches & Accessories & EVP Corporate Communications
Ravi joined Titan in 1988 as head of Direct Marketing and since then has taken up several roles in various departments ranging from export and retail. In addition to being the CEO and Executive Vice President of the Watch and Accessories business, Ravi also looks after the Corporate Communications of the Company. He was heading the Middle East and Africa operations of Titan International (ME) as the Managing Director till 2005 where he looked after the services for jewelry, fragrances, and watches. Ravi established the Titan Eye+ brand and is the CEO for the same.
The stocks of Titan Company Ltd. can be bought and sold on the two major stock exchanges in the country - National Stock Exchange and Bombay Stock Exchange. The codes for the same are mentioned below.
As for the stock market indices, Titan Company Pvt. Ltd. is a part of NIFTY 50, Nifty 100, Nifty 200, Nifty 500, Nifty Next 50, S&P BSE 100, S&P BSE 200, S&P BSE 500.
The profit before tax of the company saw a growth of 22.1% at Rs. 423 crores, for the Q3 FY18 ending December 2017. Income from sales grew 6.1% during the same period and revenue for the nine month period increased by 23.3%.
High demand for jewelry and watches during the Diwali and Dussehra season helped the company yield a stronger quarter. The steady expansion of the watch segment has been favorable for the company's profit.
Meanwhile, the jewelry segment grew 15% and was the most significant revenue contributor. The removal of jewelry business from the purview of PMLA (Prevention of Money Laundering Act) helped Titan report a strong quarter. On the other hand, a drop down in the GST rates for watches from 28% to 18% resulted in a growth of 4.7% for this segment.
Titan also continued the expansion of their stores. As of December 31, 2017, there are a total of 1,439 retail stores.
The opening price of the stock on January 1, 2018, in NSE, was around Rs.900, and it kept increasing owing to steady growth in Q3 FY2017. By the end of January 2018, the stock price was close to Rs.880. Meanwhile, the stock price on BSE during the same period was around Rs.860 and didn't change much by the end of the month.
In the first week of February, the stock price fell close to Rs.760 and stayed in the range of Rs.820 by the end of the month.
Regarding performance, the stock price has been consistently increasing at a decent pace over the years. The company has been recording profits in most of the quarters that has resulted in a growing price of the share. A sharp reduction in the GST rates for making jewelry has been helpful for Tanishq to gain regarding quarterly profits.
Titan has been a pioneer in the watch industry for decades in terms of quality and brand name. The company also banks on the rich goodwill of the Tata Group.
Investing in the company may be a good idea considering the consistent growth in the profits and an attractive product portfolio.
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