Titan has delivered massive returns for the investors in the last 10 years. The Tata Group company stock, which traded at Rs 59 per share in 2009, surged over 2000 percent, to currently trading at Rs 1202. To put into perspective, an investment of Rs 1000 in the discretionary consumption stock in 2009 would have fetched Rs 21,280 for an investor.
Priced at Rs 2.5 per share in 2003, the Titan stock has risen 47,980 percent till date. In the last one year alone, Titan has returned 43 percent, while adding 38 percent since January this year. Not just that, Titan achieved Rs 1 lakh crore market capitalisation in May.
The stock hit a 52-week high of 1,287.55 on June 10 this year, while it hit its 52-week low of Rs 731.70 on 9 October last year.
While analysts remain bullish on the stock, they maintain that expensive valuations may hinder growth. Titan offers a range of products under a single umbrella brand that has diversified into Diamond & Jewellery, Watches, Perfumes, eyewear, etc.
For the March-quarter, the company posted a 4.42 percent year-on-year rise in standalone net profit at Rs 294.58 crore as against Rs 282.12 crore in the corresponding quarter last year.
Segmentwise, revenue from watches and jewellery business jumped to Rs 531.19 crore and Rs 4,105.37 crore, respectively, in Q4FY19 against Rs 492.41 crore and Rs 3358.05 crore in the corresponding quarter last year.
Revenue from eyewear increased to Rs 127.73 crore against Rs 108.66 crore during the same period.
After January-March quarter results this year, Edelweiss retained 'buy' rating on the stock, saying that Titan is a strong play on discretionary spends with demand shifting from unorganised to organised segment.
Going forward, brokerage firm Sharekhan in a report said that digitalisation is one of the key growth drivers for the company and it is focusing on wearables (under the Fastrack brand) and is planning to launch adventure gear watches, which will help to maintain double-digit revenue growth in the near to medium term.
Improvement in the profitability of the watches segment would be the function of improvement in revenue mix and higher sales volume in the coming years, it added.
Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions
First Published: IST