{"id":533,"date":"2019-12-10T11:41:44","date_gmt":"2019-12-10T11:41:44","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=533"},"modified":"2019-12-10T11:41:46","modified_gmt":"2019-12-10T11:41:46","slug":"demand-has-been-quite-decent-subbu-subramaniam-chief-financial-officer-titan-co-ltd","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/12\/10\/demand-has-been-quite-decent-subbu-subramaniam-chief-financial-officer-titan-co-ltd\/","title":{"rendered":"Demand has been quite decent: Subbu Subramaniam, Chief Financial Officer, Titan Co. Ltd"},"content":{"rendered":"\n<p><strong>Update&nbsp;on the Indian Equity Market:<\/strong><\/p>\n\n\n\n<p>On Monday, NIFTY50 closed -0.13% higher at 11,936.\u00a0NIFTY50 gainers includes BPCL (+2.2%), Axis Bank (+2.1%) and Adani Ports (+2.0%). NIFTY50 losers includes TCS (-3.0%), HCL tech (-1.6%) and Cipla (-1.3%). Auto (+0.8%), Metal (+0.5%) and Financial Services (+0.4%) were the top gainers and Realty (-1.6), IT (-0.9%), and Media (-0.8%) were the top losing sectors.<br><\/p>\n\n\n\n<p>Excerpts from an interview with Mr. Subbu Subramaniam, CFO, Titan Co. The interview was published in Livemint dated 05<sup>th<\/sup>&nbsp;December 2019.<\/p>\n\n\n\n<ul><li>Titan has embarked on Omni channel in five flagship stores in Bengaluru. They are planning to adopt Omni channel across all their divisions. Their websites are done; their e-commerce platforms are quite robust now.<\/li><li>The Omni part has just about started; they are starting with the watch division. They have started it with Bengaluru, but this could get rolled out fairly quickly.<\/li><li>Even as they start rolling out for the watch division across the country, they may &nbsp;start in a couple of months in Tanishq, as well in jewelry division.<\/li><li>So, Omni is going to be the way they will all do business. People can look at a product anywhere, whether it is online or offline, and choose to take the goods from anywhere. So, that is the strategy, it is more of an enabler.<\/li><li>Jewelry margins depend to a large degree on top-line growth, because that is where economies of scale work and the operating leverage kick in. On a gross margin basis, they are generally in the same ballpark as they have been.<\/li><li>As they stand right in the middle of the quarter, he restrained from giving any number at this point in time, but EBIT should generally, be in the ballpark of growth \u2013 margins that we have been having in the financial year.<\/li><li>Demand has been quite decent. November itself has not been bad. Despite Diwali being a little early, demand has been generally fine. Of course, they also had more promotions, which was required under the circumstances. The wedding season has been quite decent.<\/li><\/ul>\n\n\n\n<p><strong>Consensus Estimate (Source: market screener, Investing.com website)<\/strong><\/p>\n\n\n\n<ul><li>The closing price of Titan Co. was&nbsp;\u20b9&nbsp;1,175\/- as of 09-December-19. It trades at 68x\/ 49x\/ 41x the Consensus EPS estimate for FY20E\/ FY21E\/ FY22E of&nbsp;\u20b9&nbsp;18.7\/ 23.9\/ 29.0 respectively.<\/li><li>Consensus target price of \u20b9 1,216\/- implies a PE multiple of 42x on FY22E EPS of \u20b9 29\/-<\/li><\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update&nbsp;on the Indian Equity Market: On Monday, NIFTY50 closed -0.13% higher at 11,936.\u00a0NIFTY50 gainers includes BPCL (+2.2%), Axis Bank (+2.1%) and Adani Ports (+2.0%). NIFTY50 losers includes TCS (-3.0%), HCL tech (-1.6%) and Cipla (-1.3%). Auto (+0.8%), Metal (+0.5%) and Financial Services (+0.4%) were the top gainers and Realty (-1.6), IT (-0.9%), and Media (-0.8%) [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[80,148,1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/533"}],"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=533"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/533\/revisions"}],"predecessor-version":[{"id":534,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/533\/revisions\/534"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}