Tata Group-backed gems and jewellery stock, Titan Company will be in focus after its Q4 and full-year quarterly announcements. Q4FY24 PAT registered growth of 4.8% YoY to Rs 736 crore, while EBITDA jumped 10% YoY to Rs 1,084 crore in the quarter. Total income of Titan soared by 21.8% YoY to Rs 9,419 crore. Although, Titan stock will react to its earnings report next week, as of now, there is a potential of 10% upside in the share.
Titan Company Results:
Titan (Consolidated) recorded an income growth of 22% in Q4FY24 compared to Q4FY23. EBIT grew by 10% YoY to ~1,192 er, whereas PBT was flat at ~991 crores that included financial costs of CaratLane acquisition and ESOP related costs.
In Jewellery business, total income for the quarter grew 19% over Q4FY23 to ~8,998 crores. The India business grew 20% in the same period. EBIT at ~1,089 crores recorded a margin of 12.1% for the quarter. For the full year, Division
recorded a Total Income growth of 20% to ~38,353 crores. The corresponding EBIT was ~4, 726 crores at a margin of 12.3% for FY24.
In case of watches and wearables, the business recorded a Total Income of ~940 crores, up 8% over Q4FY23. The domestic business grew 9% in the same period. EBIT came in at ~80 crores clocking a margin of 8.5% for the quarter. For
the full year, Division recorded a Total Income growth of 18% to ~3,904 crores. The corresponding EBITwas ~397 crores at a margin of 10.2% for FY24.
While its eyecare business posted Total Income of ,166 crores in Q4FY24 was flat compared to Q4FY23. Business recorded an EBIT of ~8 crores clocking a margin of 4.8% for the quarter. For the full year, the EyeCare Division recorded a Total
Income growth of 5% to ,724 crores. The corresponding EBIT at ,85 crores recorded a margin of 11.7% for the full year.
CK Venkataraman, Managing Director of the Company said, "As we look forward to FY25, all businesses ofTitan Company Limited are single-mindedly continuing to focus on satisfying the ever-evolving needs of our lifestyle consumers ."
Titan Share Price:
On NSE, Titan share price ended at Rs 3,514.75 apiece, down by 1.50% on May 3rd. This was announced before Q4 results. Its market cap is at Rs 3,12,034.64 crore. YTD, the stock has corrected by a single-digit of 4.4%. But its long-term growth is robust, making investors crorepati.
In a year, Titan stock zoomed by 32%, while in 5 years, the stock jumped as high as 211% on NSE. But its all-time gains is a whopping 82,212.65%. Titan shares were at Rs 4.27 apiece on January 1, 1999. This price is adjusted to its stock split of 1:10 and bonus issue of 1:1 later.
If an investor had bought Titan shares for just Rs 50,000 at Rs 4.27 apiece. Their investment has now flourished to a whopping Rs 4.11 crore as of May 3, 2024.
Dividend: Titan did not make any dividend announcement after Q4. However, Titan is a dividend-paying stock. Since June 2001, the company has delivered up to 23 dividends. At the latest, the company paid dividends of up to Rs 10 per share in the last 12 months.
Bonus Issue: Titan has announced only one bonus share as of now. It was on June 23, 2011, Titan paid 1 bonus share on the existing 1 share, taking the ratio to 1:1.
Stock Split: On the same day of turning ex-bonus, Titan also turned ex-split with its face value splitting to Rs 1 from earlier Rs 10. That would be a stock split ratio of 1:10.
As of now, the consensus recommendation from 31 analysts for Titan Company Ltd. is HOLD, as per Trendlyne data. These consensus led to 1-year average target of Rs 3,882 in Titan shares ahead, hinting at 10% upside from CMP.
Titan Company Limited ("Titan"), a joint venture between the Tata Group and the Tamilnadu Industrial Development Corporation (TIDCO), commenced its operations in 1987 under the name Titan Watches Limited. In 1994, Titan diversified into Jewellery (Tanishq) and subsequently into EyeCare. Over the last three decades,
Titan has expanded into underpenetrated markets and created lifestyle brands across different product categories including fragrances (SKINN), accessories and Indian dress wear (Taneira) and thoughtfully designed Women Bags (IRTH). Titan is widely known for transforming the watch and jewellery industry in India and for shaping India's retail market by pioneering experiential retail.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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