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Subodh
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Joined: 18/Aug/2006
Location: India
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 Topic: Titan - The jewellery retailing story
Posted: 18/Aug/2006 at 10:11pm |
Hi Basant:
Considering the expertise you have in the retail sector, which is amply demonstrated by your picking of Pantaloon Retail and holding it through the wild ride, what do you think of Titan Industries. Titan industries has kept increasing its earnings at the rate of more than 100% and its debt keeps falling each year. Past 3 years, it has fallen by nearly 40%. Their watches and jewellery brands are doing well and continue to clock more and more value as well as unitwise sales each year. Besides, Rakesh Jhunjhunwala has a huge stake in Titan to which he has kept on adding to whenever the share price dips. The PE sounds high, but then Titan has always been a high-PE stock whether it was priced at Rs 80. or Rs. 800. Please venture a comment on this issue.
Edited by TEAM-EQUITYDESK - 24/Aug/2006 at 7:48am
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basant
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Posted: 18/Aug/2006 at 10:33pm |
Hi Subodh
Titan is a great concept again. the only problem why I bought and sold off Titan early on was that while its jewelery division is growing at 40% + the watch division hampers growth at 12 - 15%. the company is getting into manufacturing outsourcing with high precision engineering concepts. If you can ride out the WILD swings that this stock takes it is worthe being invested in. My sense is that it should do an EPS of Rs 23 for Fy 07 and grow at about 30%+. For Titan there is practically no competition in the jewelery space no Reliance, no Wal mart nothing.
About Rakesh Jhunjhunwala he has off loaded a bit of Titan over the past 2 - 3 months but just because some one sells a stock does not become bad. The company has been paying off its debt so that should add on to the market cap as it has.
Edited by basant - 18/Aug/2006 at 10:36pm
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basant
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Posted: 03/Jan/2007 at 11:49am |
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Market grapewine has it that Titan is planning to buy and set up an eastern India eye care retailing chain of stores.
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tigershark
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Joined: 13/Oct/2006
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Posted: 27/Mar/2007 at 10:17pm |
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the erode store gold plus of titan earned 25 crs last yr and hopes to do better this yr,seeing this titan has stepped up its focus on the lower end jewellery brand it has rolled out 8 gold plus in the last 6 months with 18 waiting to open this yrbhasker bhat has this to say-if one can be smart at managing costs the oportunity to make money at the lower end is huge so over the next couple of yrs titan will be setting its eyes on the lower end of the business both in jewellery and watches.over the next 5 yrs gold plus will contribute for a third of titans jewellery sales form less than 5% currently.jewellery sales from tanishq should go upto 3500 crs by 2011 from 1200crs now.gold plus is targetting the B AND C income groups who buy gold for their daughters marriageor as a security here purity comes into play.over 40% of the estimated annual gold sales of 70000crs is accounted by this group for this group purity is more imp than design which is why gold plus is continuosly educating the buyer that he has to buy the real thing they have installed carat meters in all their outlets.the gold plus stores have also been made to look very traditonal.the customer can buy as little as 1 gram of gold and can exc old for new at only 2% charge whereas outside it is 6-8%.gold plus are entirely franchisee driven in small towns local contacts are king.come april tittan is launching a watch priced 275 with this it takes on the chinese head on.the key to op profits at the lower end is keeping costs down which is why titan plans to outsource 75-80% of its production so no wonder BHAIYA is adding basant what do yu think is part 2 of the titan story just unfolding i bought at 100 levels and exited at 700-750 levels does it make a compelling buy now
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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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basant
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Posted: 27/Mar/2007 at 11:58pm |
I was and am extremely bullish on this one. I had also bought early and exited early but I think companies like Titan and the likes are not one year stories they are a 5-10 year play with excellent management and a almost certain 30% CAGR.
I think company should do an EPS of closer to Rs 35 in Fy08 hence a 30-32 discounting should yield a price objective of closer to Rs 1100.
But the best point to add Titan from an initial position which should be at market rates will be when the markets tank. Generally this is the first time I am writing about timing a stocks but if you see whenever the market falls Titan falls faster and harder - the overhang of the futures position claims its toll.
Personally I prefer high growth companies and concentrated portfolios I am not holding Titan but the moment I think of diversifying Titan is there on the list.
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deveshkayal
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Posted: 27/Mar/2007 at 12:32pm |
Titan to bring in three global brands to India (ET)
Buoyed by the success of Tommy Hilfiger brand, which it brought into India, Tata group-controlled Titan Industries plans to introduce another two to three international brands into India in the next two to three years.
“Tommy Hilfiger has done well in the past year and seen a growth of more than 60% year on year. We have plans to bring in two to three more licensed brands into India in the next two to three years including at least one in the next one year,” said Titan Industries chief operating officer Harsh Bhatt.
Asked whether the company was looking at any specific locations from where these products would come from, Bhatt declined to give further details. Media reports had earlier suggested that the company was in talks with Hugo Boss for a possible entry into India through the franchise route.
The growing market for the company has prompted it to start a new manufacturing facility in India and outsourcing of watches from neighbouring countries as well as increasing its retail presence by around 50% in the coming fiscal.
“We will be soon opening a new facility in Rourkee with a manufacturing capacity of 2-3 million watches with an investment of Rs 10 crore and will be functional by later 2007,” Bhatt said.
“We have opened a sourcing office in Hong Kong for outsourcing of watches from China, Korea and other such countries and have made significant progress in that regard with nearly 20% of the production being sourced from these countries, he said.
The world of Titan's network has increased to 250 from 170 last year and we have plans to increase that to 275 by the end of this fiscal, Bhatt added. The company, which has a manufacturing facility in Hosur, Tamil Nadu and an assembly unit in Dehradun, produces about 10 million watches currently.
Meanwhile, Titan has expanded its range in the sports wear category by introducing the Aviator series of watches. The new series, inspired from
World War II fighter aircraft is targeted at the up-market, global Indian and has been priced between Rs 4,000 and Rs 7,000.
Edited by deveshkayal - 27/Mar/2007 at 12:33pm
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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Ajith
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Posted: 27/Mar/2007 at 7:25am |
The Tata brand name can be really capitalized on and it will most likely be a good multibagger based on yesterdays Bussiness Standard.
It would be interesting to project the future of 3 dissimilar companies with comparable market caps-Yes Bank,Titan and MindTree and project in one's own mind as to which company will reach the 500 crore net profit mark.MindTree(I am retaining it as I bought it at lower cost)would take the most time in my opinion unless they go in for M & A which would mean equity dilution since there isn't much cash in the Balance Sheet.Yes Bank will probably reach the figure fastest and still command the highest PE.Titan may perhaps be most likely of the the three to reach the mark.
Edited by Ajith - 27/Mar/2007 at 8:06am
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Ajith
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deveshkayal
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Posted: 29/Mar/2007 at 2:30pm |
Titan Industries will launch its third new business - optical eye-wear - under the name Titan Eye+ on April 4, 2007 in Bangalore, and open 150 Titan Eye+ stores in the medium-term.
According to a release issued by Titan to the BSE today, the business will leverage the Titan brand to a new category i.e. prescription eye-wear.
"Titan Eye+ is the retail chain in the business of sales and service of prescription eye-wear offering allied optical services like eye check up, and product offerings of frames, lenses, contact lenses etc. The product offering shall also include its own brands in the fashion eye-wear category besides licensed brands," the release added
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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