“Titan Industries is the organization that brought about a paradigm shift in the Indian watch market when it introduced its futuristic quartz technology, complemented by international styling. With India's two most recognized and loved brands Titan and Tanishq to its credit, Titan Industries is the fifth largest integrated watch manufacturer in the world. The success story began in 1984 with a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation. Presenting Titan quartz watches that sported an international look, Titan Industries transformed the Indian watch market. After Sonata, a value brand of functionally styled watches at affordable prices, Titan Industries reached out to the youth segment with Fastrack, its third brand, trendy and chic.”
“The company has sold 135 million watches world over and manufactures 13 million watches every year. With over 826 retail stores across a carpet area of over 10,08,083 sq. ft. Titan Industries has India’s largest retail network. The company has over 331exclusive ‘World of Titan' showrooms and over 83 Fastrack stores. It also has a large network of over 700 after-sales-service centers. Titan Industries is also the largest jewellery retailer in India with over 130 Tanishq boutiques and Zoya stores, over 31 Gold Plus stores. It also sports over 204 Titan Eye+ stores. The company has two exclusive design studios for watches and jewellery. Backed by over 6,000 employees, two exclusive design studios for watches and jewellery, 9 manufacturing units, and innumerable admirers’ world over, Titan Industries continues to grow and sets new standards for innovation and quality. The organization is all geared to repeat the Titan and Tanishq success story with each new offering.”
“Titan Industries Ltd has reported net profit of Rs 1442.80 million for the quarter ended on March 31, 2012 as against Rs 838.00 million in the same quarter last year, an increase of 72.17%. It has reported net sales of Rs 22817.70 million for the quarter ended on March 31, 2012 as against Rs 17779.40 million in the same quarter last year, a rise of 28.34%. Total income grew by 28.03% to Rs 23069.60 million from Rs.18019.30 million in the same quarter last year. During the quarter, it reported earnings of Rs 1.63 a share.”
“At the current market price of Rs 214, the stock is trading at 25.97 x FY13E and 21.84 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY143E is seen at Rs.8.40 and Rs.9.98 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 27% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 17.06 x for FY13E and 14.50 x for FY14E. Price to Book Value of the stock is expected to be at 8.82 x and 6.28 x respectively for FY13E and FY14E. We expect that the company will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 249 for medium to long term investment,” says Firstcall Research report.
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