Titan Company Share Price

Titan Company Share Price

  • 18.03.2025 09:28
  • economictimes.indiatimes.com
  • Keywords: Titan Company

Titan Company's share price on NSE is ₹3,081.40 with a 2.13% increase, while BSE shows ₹3,083.75 with a 2.21% rise. Key metrics include a high PE ratio of 84.47 and PB ratio of 28.52, indicating strong growth potential but elevated risk. Recent performance shows short-term gains but longer-term declines, with news highlighting falls due to reduced target prices by Macquarie.

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Estimated market influence

Titan Company

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Analyst rating: N/A

Macquarie trimmed target price and flagged gold prices impact

Context

Business Insights and Market Implications Analysis

Key Metrics

  • PE Ratio: 84.47x
  • EPS (TTM): ₹36.46
  • Market Cap: ₹2,72,710 Crore
  • Sectoral MCap Rank: 1st
  • PB Ratio: 28.52x
  • Dividend Yield: 0.36%
  • Face Value: ₹1.00
  • Beta (Long-term): 1.08x
  • VWAP: ₹3,057.52
  • 52W H/L: ₹3,867.00 / ₹2,985.05
  • BV/Share: ₹105.80
  • MCap/Sales: 6.63x

Share Price Performance

  • 1 Day: +2.09%
  • 1 Week: +1.12%
  • 1 Month: -4.39%
  • 3 Months: -9.45%
  • 1 Year: -13.95%
  • 3 Years: +13.96%
  • 5 Years: +230.96%

News & Analysis

  • Recent Decline: Titan shares fell nearly 2% after Macquarie trimmed target price, citing gold price rally risks to margins.
  • Market Rout: Along with Tata Motors and RIL, Titan is among 1,100 stocks at 52-week lows.
  • Growth Outlook: Titan targets up to 20% growth in jewelry business for fiscal 2026, despite gold price risks.

Financial Performance

  • ROE: Delivered 37.21% ROE in FY24, outperforming 5-year average of 25.48%.
  • Operating Expenses: Spent 1.21% of revenues on interest expenses and 3.65% on employee costs in FY24.

Corporate Actions

  • Board Meeting: Held on Feb 04, 2025 (announced Jan 15, 2025).
  • Dividend: Final dividend of ₹11.0 announced Jun 27, 2024.

Market Position and Shareholding

  • Sector Leadership: Titan is the top company by market cap in the Gems and Jewellery sector.
  • Shareholding:
    • Promoters: 52.90% (No pledge)
    • FIIs: 18.11%
    • DIIs: 11.26%
    • Mutual Funds: 5.95%
    • Others: 17.73%

Market Trends and Risks

  • Gold Price Impact: Gold rally poses margin pressure for Titan's jewelry business, affecting short-term profitability.
  • Competitive Dynamics: As a market leader, Titan faces competition from smaller players and potential entrants in the jewelry sector.
  • Regulatory Environment: No immediate regulatory risks noted, but sector-specific policies could impact margins.

Long-Term Implications

  • Growth Potential: Strong focus on jewelry expansion suggests long-term revenue growth opportunities.
  • Valuation Concerns: High PE and PB ratios (84.47x and 28.52x) indicate elevated valuations, posing risks for short-term investors.

Strategic Considerations

  • Investor Sentiment: Recent share price decline reflects investor concerns over gold prices and broader market rout.
  • Strategic Moves: Titan's focus on jewelry growth aligns with Indian consumer demand trends, but execution will be key to meeting targets.