Titan

#1
well anohther very liquid stock is of Titan industries...

once a few months back titan industires open a new showroom in hong kong and the other day its stock rose like a skyscraper!! currently its above 1000! i think... havent opend my terminal from a while :(
 

Alchemist

Administrator
Staff member
#2
I haven't really been tracking the fundamentals of the stock.

Technically speaking, the stock is just above its 200 day moving average. Below 750 the stock will become really weak.

The current market price is 785 and investors should keep a stop loss of 745 or so.
 
#3
The stock has outperformed in last few quarters and announced the stock split,dividend and bonus shares. How to get the information will new investors/buyers will be eligible for this?

Titan Ind
 

magnet

Active member
#4
The stock has outperformed in last few quarters and announced the stock split,dividend and bonus shares. How to get the information will new investors/buyers will be eligible for this?

Titan Ind
I guess record date haven't been fixed. Once that's done up to that date people having shares will get all of the following. But dates may differ for split,dividend and bonus.

Yes new buyer right now too will get same. Keep a tab on record date.
 
#5
Record date announced:

TITAN

I had one query. If I hold one share before bonus and split date, after the ex-date, I will be holding will be 1+1 (Bonus Share)=2 and then split into value of new shares?
 

Alchemist

Administrator
Staff member
#6
I had one query. If I hold one share before bonus and split date, after the ex-date, I will be holding will be 1+1 (Bonus Share)=2 and then split into value of new shares?
I am not sure which will happen first, but irrespective of the which happens first, you will have 20 shares of face value Re. 1.
 
#7
I am not sure which will happen first, but irrespective of the which happens first, you will have 20 shares of face value Re. 1.
So it means at present price of Rs 4640, the price with get reduced by 10 times, i.e. Rs 464 and shareholder with 1 share will have 20 shares?
 
#8
So it means at present price of Rs 4640, the price with get reduced by 10 times, i.e. Rs 464 and shareholder with 1 share will have 20 shares?
There is 10 to 1 split and also 1:1 bonus, so one will become twenty and the share price will be 232.

For Example:

10 shares at 4640 = Rs 46400 = 200 shares at 232;
 

man4urheart

Well-known member
#9
Do you know when the split and bonus happen? Near tops!

They want to trap the retail herd!

From here on this share won't give the phenomenal returns!
 
#10
Kindly have a look at the latest investor presentation.

http://www.titan.co.in/files/download/InvestorMeet - 8thJune2011.pdf

Titan is by far the best retail play to ride the consumer bandwagon in India.

Although it's pricing may appear irrational, however the PEG is still less than 1.

Such growing companies will never come cheap. Looking at the potential market for the next 10-15 years the stock will give handsome returns even from these levels.

Disclaimer: I am invested in Titan, so my views may be biased. Please do your own research before investing.
 
#11
Kindly have a look at the latest investor presentation.

http://www.titan.co.in/files/download/InvestorMeet - 8thJune2011.pdf

Titan is by far the best retail play to ride the consumer bandwagon in India.

Although it's pricing may appear irrational, however the PEG is still less than 1.

Such growing companies will never come cheap. Looking at the potential market for the next 10-15 years the stock will give handsome returns even from these levels.

Disclaimer: I am invested in Titan, so my views may be biased. Please do your own research before investing.
Thanks for the Link.

Titan operates in watches, jewellery and eye care.

I think jewellery and eyecare business will continue to grow.

Not so sure about the watch business. I have not worn a watch for over 5 years now. The Mobile has replaced the watch. Also, value perception of watches has changed. Earlier people used to gift watches on special occasions like birthdays, Diwali etc. Now watches are way down on the gift list.
 
#12
Kindly have a look at the latest investor presentation.

http://www.titan.co.in/files/download/InvestorMeet - 8thJune2011.pdf

Titan is by far the best retail play to ride the consumer bandwagon in India.

Although it's pricing may appear irrational, however the PEG is still less than 1.

Such growing companies will never come cheap. Looking at the potential market for the next 10-15 years the stock will give handsome returns even from these levels.

Disclaimer: I am invested in Titan, so my views may be biased. Please do your own research before investing.
CMP = 4,573

Consolidated EPS:

FY10-11 = 97.57
FY09-10 = 56.61
FY08-09 = 36.93
FY07-08 = 33.24
FY06-07 = 22.52

Current P/E = 4573/97.57 = 46.86

Last 4 year growth (CAGR) = 44.27%
Last 3 year growth (CAGR) = 43.18%
Last 2 year growth (CAGR) = 62.54%
Last year growth = 72.35%

The million dollar question: Can the company continue this growth over the next 3-5 years?
 
#13
Splits and bonuses do not mean tops or bottoms in stock prices,they just reduce the ticket price of the stock to more affordable levels.

As far as trapping the herd goes,i would like to quote Peter Lynch :

"Smart money is not that smart and dumb money is not that dumb,dumb money is only dumb when it listens to the smart money."

Ultimately the stock prices depend on earnings and considering the earnings quality and growth,the stock should continue getting a valuation premium.

There is no doubt that the stock is expensive,but if investing were that simple it wouldn't be fun at all!

@sudhashbahu

My gut feeling is that the company can continue its growth momentum(35-40%) over the next 3-4 years.

Titan FY11 revenue up 40%, sees FY12 sales over Rs 8200cr - CNBC-TV18.
 
#16
So you mean to say, there is net "no bonus share" but price reduction/adjustment to make it more affordable for retail investors. I thought it's going to be "1 ka 2 offer".

Thanks.
 

Alchemist

Administrator
Staff member
#18
Such growing companies will never come cheap.
As I investor, I no longer buy that argument.

Right now, consumer stocks are the favorites and investors are willing to give crazy multiples to these stocks.

Titan is trading at something like 35 times forward earnings. I don't find any value in Titan at 4500.

75% of the revenues and 70% of the operating profit of Titan comes from the Jewellery business. All other business are minor contributors.

The Jewellery business is sensitive to the price of gold. That's because Titan operates with cost plus percentage model.

Rising gold prices were partially responsible for Titan's strong growth in the last few years.

If gold prices go down, Titan's income may be impacted.

No doubt, Titan has a robust business model, but I find the valuations exorbitant.
 
#19
Any reason why this counter falling today sharply?

I believe that if one still buys any no of shares today, one is entitled for dividend and bonus shares as the ex-date 23rd June?

Hope this is correct?

Any update on this?

regards
 

magnet

Active member
#20
Any reason why this counter falling today sharply?

I believe that if one still buys any no of shares today, one is entitled for dividend and bonus shares as the ex-date 23rd June?

Hope this is correct?

Any update on this?

regards
I guess traders clearing positions.They are not interested in bonus and splits. That's disadvantageous for their tax calculation as lot of speculative stuff adding by tax officers.

Traders prefer clear strategy. Either profit or loss on money with quantity of shares remaining same.

Anyways trying an out of luck. Applied for a single share at 4275. Else will buy tomorrow at split price. I guess 210-220 it might be trading tomorrow.
 
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