Basant ji, does price of gold affect their balance sheet?? I mean e.g gold falls from 13000 to say 8000. Do they hold too much inventory to take a forex like hit on Balance sheet or vice versa on the opposite side.

I have been to the Titan Eye showroom in Koramangala. Pretty ordinary range. Foreign Branded stuff was good but too expensive for me to buy.

Best part for me was their ROCE nos. Those are quite staggering.

Thanks again for fantastic write up.

Luke

Originally posted by basant Gold is a pass through.But surely prices going up and down affect the value of invesntory. But surely they should be hedging their positions.

No, I do not think this one is so much dependent on Gold! Otherwise it is a quasi Gold company. The earnings do not show that. Otherwise the company would have has an eratic earnings profile.

 I meant profits/losses on inventory held.
 A significant part of Titans valuation is due to bright prospects for its gold business which would be affected if income is on per gram basis as there will no doubt be some slowdown in short term as already gold imports are substantially down.There could also be an expectation of getting gold cheaper.
    Oil prices coming down and gold prices as well would be the best news for Titan.