Friday, December 5, 2008

Stock Idea: Titan Industries

The watch company from the stables of Tata, which has changed the way in which we look at watches now – from being just a device to tell time to a fashion accessory, the company seems to be having a good time even in these bad times.


For the second quarter ended 30th September 2008, net sales of the company rose 50% at Rs.1088.76 crore. Despite a 49% rise in operating expense, 58% rise in interest outgo, the company has managed to keep its bottomlines intact. It ended the second quarter with a 88% jump in PAT at Rs.87.14 crore.


The margins also indicate the same thing – at the OPM level the increase is flat – from 11.04% in Q2FY08 to 11.69% in Q2FY09. But the rise in NPM was from 6.39% to 8%.


Watch sales grew by 18.8%, jewellery income grew by 71.4% and its other business grew by 93.7%, all on a YoY basis. The company's network has expanded to 243 World of Titan and 12 Sonata watch showrooms, 114 Tanishq boutiques, 28 Gold plus stores and 34 Titan Eye+ outlets, a total of 431 exclusive stores making it one of the largest specialty retailers in India.


The stock price is holding strong at Rs.860 levels after having touched new low at Rs.710. Stay invested as the company is expected to grow by around 35% at the topline and around 40% at the bottomline.


Source: sptulsian.com

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