{"id":441,"date":"2019-11-08T10:58:37","date_gmt":"2019-11-08T10:58:37","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=441"},"modified":"2019-11-08T10:58:39","modified_gmt":"2019-11-08T10:58:39","slug":"titans-market-share-gain-story-intact-s-subramaniam-chief-financial-officer-titan-co-ltd","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/11\/08\/titans-market-share-gain-story-intact-s-subramaniam-chief-financial-officer-titan-co-ltd\/","title":{"rendered":"\u201cTitan\u2019s market share gain story intact\u201d- S. Subramaniam, chief financial officer, Titan Co. Ltd."},"content":{"rendered":"\n<p><strong>Update&nbsp;on\nthe Indian Equity Market:<\/strong><\/p>\n\n\n\n<p>On Thursday, NIFTY closed 0.42% higher at 12,016. Infratel (+3.5%), Sun pharma (+3.4%) and IndusInd Bank (+2.8%) were the top NIFTY50 gainers. UPL (-7.8%), Yes Bank (-3.6%) and GAIL (-3.5%) were the top NIFTY50 losers. Among the sectors, NIFTY METAL (+1.1%), NIFTY REALTY (0.9%) were the sectoral indices that closed positive. NIFTY PSU banks (-1.5%) and NIFTY AUTO (-0.2%) were the worst performing sectors.<br><\/p>\n\n\n\n<p>Excerpts from an interview with S. Subramaniam, chief financial officer, Titan Co. Ltd broadcasted on CNBC on 7<sup>th<\/sup> November 2019.<\/p>\n\n\n\n<ul><li>June onwards\nit has been really tight and the entire industry has been in turmoil. As far as\nare we are concerned, our market share gains story is intact but it is\nunfortunately in a very declining jewellery market.<\/li><li>Even from\nDussehra to Diwali, which is the festive season, for 33 days they have grown\n10%.<\/li><li>They are in\ntough times. Gold prices have been high but, importantly, consumer sentiment\nhas not been encouraging. consumers are trying to save money. They don\u2019t want\nto invest too much.<\/li><li>Gold coins\nsales being little higher, which means that people who are investing in the\ncategory also are looking at it more from the savings perspective rather than\nactually spending money on jewellery as adornment.<\/li><li>They are now\nlooking at 11-13% growth in second half. They also have a higher base but 10%\nin the festive season was not bad at all under the circumstances.<\/li><li>Typically\nwhen gold prices do go up there is pent up demand when it comes to the wedding\npart of the segment, people do have to finally end up investing. So, to some\nextent we could see a shift on a month-on-month or quarter-on-quarter basis.<\/li><li>Even the millennials\nwhen they get married, they have exactly the set of jewellery that otherwise\nwould have been bought and if anything the design quotient is much higher these\ndays.<\/li><li>They have\nseen east do quite well, they have seen south do relatively quite well, but the\nregion that gets impacted the most has been west.<\/li><li>FY20 is\nexpected to be a fairly bad year. They are not going to meet their 20% target\nand they have given that guidance also now. Their goal for the next six months\nis 11-13%.<\/li><li>One of the\nbiggest drivers in the last three years has been the gold exchange programme.\nToday it accounts for almost 40% of the revenues. They need more growth drivers\nlike that. <\/li><li>They do not\nwant to have any quarter where they have less than 10% margin. They are well\nwithin their own internal plans as far as the margin for the watch business is\nconcerned.<\/li><li>They are\ntrying to even it out better than having 18% in the first half and then going\ndown to 7-8% in the second half. So, in FY20, we should look at second half to\nbe more than 10%. So, it is a conscious decision and, therefore, it is not\nreally a fall.<\/li><\/ul>\n\n\n\n<p>Consensus Estimate (Source: market screener and investing.com website)<\/p>\n\n\n\n<ul><li>The closing price of Titan was \u20b9 1,166\/- as of 7<sup>th<\/sup> November 2019. It traded at 63x\/ 48x\/ 39x the consensus EPS for FY 20E\/ FY      21E\/ FY 22E of \u20b9 18.6\/ 24.4\/ 29.7 respectively.<\/li><li>Consensus target price of \u20b9 1,246\/- implies a PE multiple of 42x on FY22E EPS of \u20b9 29.7\/-.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Update&nbsp;on the Indian Equity Market: On Thursday, NIFTY closed 0.42% higher at 12,016. Infratel (+3.5%), Sun pharma (+3.4%) and IndusInd Bank (+2.8%) were the top NIFTY50 gainers. UPL (-7.8%), Yes Bank (-3.6%) and GAIL (-3.5%) were the top NIFTY50 losers. Among the sectors, NIFTY METAL (+1.1%), NIFTY REALTY (0.9%) were the sectoral indices that closed [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[147,148],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/441"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=441"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/441\/revisions"}],"predecessor-version":[{"id":442,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/441\/revisions\/442"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}