Titan Company Stock Analysis – Yadnya Investment Academy

Reading Time: 3 minutes

Short Stock Analysis of Titan


The Indian Jewellery Industry went through a lackluster phase post the outbreak of the COVID-19 pandemic. However, things are taking a turn for the better and a full-fledged recovery is underway. With blockbuster demand amid the festive season and the IPO of Kalyan Jewellers coming soon, this sector has gained massive traction. In today’s blog, we present a brief analysis of the Goliath that rules the roost – Titan Company.

Stock O Meter
Stock O Meter – A Complete Equity Research Tool by Invest Yadnya

Titan Stock Analysis

Indian Jewellery Market

  • The Indian Jewellery market is estimated at Rs. 4.5 Lakh Crore. Out of which, the organized market accounts for ~ INR 1.4 Lakh Crore (31.1%).
  • Titan is responsible for 4% of the overall jewellery market. It holds a mega 12% market share in the organized segment followed by Malabar Jewellers (10%), GRT (9%) and Kalyan Jewellers (7%).
  • Having said that, one thing that will make your jaws drop is that company enjoys a whopping 56% share in organised market’s profit.
Titan Market Share (%) and EBITDA Margin (%)
  • The fundamental cause for Titan’s dominance over its peers is that they have a robust EBITDA Margin of 12% as against jewellery industry margins at 4%
Also Read on FinMedium:  The marginal utility of Money

Titan- High Expansion Opportunity vs Other Discretionary Brands

  • Titan has an aggressive expansion plan in place. Their target is the household segment consumer acquired by other discretionary brands such as Maruti and Royal Enfield.
  • At present, Titan has 340 Tanishq stores spread across 211 cities. On the other hand, Maruti and Royal Enfield have 2390 and 921 showrooms  widely scattered around 1964 and 680 cities respectively.
  • This simply goes to show the golden growth opportunity staring at Titan. Titan can comfortably open their stores in Tier 2, 3, 4 cities, further developing and diversifying their well-established strong franchise business model.  This trend will be clearly visible in the years to come.
  • Currently, Titan draws only 22%-24% of its revenues from the wedding segment . It is influenced greatly by the unorganized jewellery market.
  • The company’s Digital/Omni-channel Initiatives such as live video shopping, augmented/virtual reality and try at home implemented during the COVID-scenario make it better-placed versus peers to faster and gain market share.


Titan has observed good traction across all its businesses in the recent festive season. The jewellery business witnessed a mid-teens growth (around 15%) for the 30 day festive season starting from Dussehra till Diwali over the last year.

Also Read on FinMedium:  Bandhan Bank Stock Analysis| Q2FY21 Results Analysis

The management is optimistic and expect the vigorous demand trends to persist in the quarters ahead.

Source link

Every Wednesday and Saturday, we send Info-Graphic and FinMedium Weekly Digest newsletters to our 25000+ Subscribers.

Join Them Now!

Invest Yadnya

Invest Yadnya

Yadnya Investment Academy focuses on Investor Education, Personal Finance, Money Ideas, Mutual Funds, Stock Market, Investing, and Savings.
Please Share :)