Motilal Oswal: Titan Company-Opportunity Remains Significant In Difficult Times 
An employee hands a 50-gram gold bar to a customer inside a Titan Co. Tanishq jewelry store in Mumbai, India (Photographer Dhiraj Singh/Bloomberg)

Motilal Oswal: Titan Company-Opportunity Remains Significant In Difficult Times 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

FY20 was a challenging year with high gold prices affecting Q1 FY20 and the Covid-19 crisis disrupting Q4 FY20 For Titan Company Ltd.

Amid this tough operating environment, however, overall topline and earnings growth for Titan remained healthy at 6.4% and 8.9%, respectively. This continues a strong trend witnessed in recent years as a result of which sales and profit after tax compound annual growth rates over FY2017-2020 were also impressive at 17% and 24%, respectively.

Response to the Covid-19 crisis has also been heartening, with clear communication on safety and the addition of two new growth engines – digital thrust and lower price point products.

This is besides the already identified growth engines in recent years: (a) gold exchange, (b) wedding jewellery, (c) high-value diamond jewellery, (d) middle-India store expansions, (e) the ‘Golden Harvest’ scheme, and (f) focus on low-market cities.

Barring high-value jewellery sales, we note that all of these growth engines are at play in FY21 as well.

Click on the attachment to read the full report:

Motilal Oswal Titan Company Annual Report.pdf


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