INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Ace investor Rakesh Jhunjhunwala and his better-half Rekha Jhunjhunwala first bought this stock in 2005
Over the next two-three years, the couple steadily raised stake in the company to over 9 per cent and made sure their combined stake never
In the last 10 years, the company has grown its sales and earnings at over 20 per cent compounded annually.
Ever since Jhunjhunwalas' first
invested in this stock (based on data available with stock exchanges i.e
Dividend payout ratio has been at 27 per cent.
From a market-cap of mere Rs 1,000 crore, the company has since entered the elite Nifty50
club.
This past week, the Tata Group firms said it was targeting Rs 50,000 crore in total sales by March 2023, the jewellery business alone
accounting for 80 per cent of it
This should translate into a roughly 20 per cent earnings growth over next five years.
Of the 31 brokerages that cover the stock, 23 have a
immense value to investors over the last several years, and its ability to compound earnings at 23 per cent annually over last 10 years has
believe 20 per cent revenue CAGR over FY18-23E should support margin expansion, which should ideally lead to an even higher rate of profit
from $37 billion at present, growing at 8-9 per cent annually over next five years
Titan expects at least 2.5 times growth in the jewellery segment and aims to more than double its eyewear business in next five years
JM Financial says while the total gold demand in the country grew at 11 per cent CAGR over last 10 years in value terms, the industry
actually shrank in size in last five years in value terms.
Besides, the brokerage noted that Titan would need to grow its non-jewellery
segment by 16-17 per cent per annum on an average over FY18-23 against 5 per cent growth at present.
Consistent showData compiled from
Profit grew 22 per cent annually to Rs 697.28 crore from Rs 99.86 crore
For the first nine months of FY18, the company reported Rs 797.51 crore profit over Rs 11,631.23 crore sales.
Shift to organised sectorThe
Tata firm is projected to be a major beneficiary from the shift from unorganised to organised sector
Recent changes in regulations such as requirement of identity proof for all transactions worth above Rs 2 lakh, GST implementation and a
crackdown on black money have tilted the trade decisively in favour of organised players, among which Titan is a dominant one in terms of
Earnings CAGR is likely to be a strong 26 per cent over FY18-20
The sheer scale of top-line opportunity demands premium valuations, the brokerage said
Nirav Modi and Mehul Choksi-led Gitanjali Gems, too are seen as a positive for a company that comes from the reputed Tata stable
at Singapore-based Helios Capital.
Forget the PE part, because it has demolished the competition
The third biggest company in India is saying it sold fake diamonds
Who will go to any of these companies anymore It is a bigger gift than normal, because of just the relative positioning of the one company
versus the others, Arora told ETNow.
Overseas institutional investors hold over 21 per cent stake in the Tata Group firm and domestic mutual
funds just over 3 per cent
