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Thursday, January 31, 2013

Titan Industries Quarterly Results Update

Titan Industries Ltd. posted a net profit of Rs. 203.73 crores for the Third Quarter supported by better sales, moving it up by 24.29 percent compared to last year's same quarter.

The revenues of the company were also rose by 23.67 percent to Rs. 3,017.80 crore compared with same quarter last year.

Earning Per Share (EPS) of the company now stood at Rs. 2.29 compared to Rs. 1.85 which has been recorded last year. Net Profit growth of 24 percent is best in past three quarters.

Jewellery business of the company reported much better than expected growth of 27% in revenues and it is quite impressive.

These signs of improvement however is not applicable to watches business of the company which reported a 10-qurater low sales growth of 10.6 percent despite improvement in its key brands and the price hike undertaken by the company in last one year.

Following is the earnings summary of the company for reference.

  • Standalone
Top of Form
Bottom of Form
Quarterly Results of Titan Industries
------------------- in Rs. Cr. -------------------



Dec '12
Sep '12
Jun '12
Mar '12
Dec '11






Sales Turnover
3,017.80
2,275.98
2,205.81
2,281.77
2,440.40





Other Income
22.01
23.82
25.02
25.19
24.44





Total Income
3,039.81
2,299.80
2,230.83
2,306.96
2,464.84





Total Expenses
2,735.05
2,026.57
1,993.69
2,074.36
2,227.22





Operating Profit
282.75
249.41
212.12
207.41
213.18





Profit On Sale Of Assets
--
--
--
--
--





Profit On Sale Of Investments
--
--
--
--
--





Gain/Loss On Foreign Exchange
--
--
--
--
--





VRS Adjustment
--
--
--
--
--





Other Extraordinary Income/Expenses
--
--
--
--
--





Total Extraordinary Income/Expenses
--
--
--
--
--





Tax On Extraordinary Items
--
--
--
--
--





Net Extra Ordinary Income/Expenses
--
--
--
--
--





Gross Profit
304.76
273.23
237.14
232.60
237.62





Interest
11.69
12.14
12.60
13.12
0.96





PBDT
293.07
261.09
224.54
219.48
236.66





Depreciation
14.19
13.03
12.32
12.49
11.92





Depreciation On Revaluation Of Assets
--
--
--
--
--





PBT
278.88
248.06
212.22
206.99
224.74





Tax
75.15
67.92
56.13
62.71
60.83





Net Profit
203.73
180.14
156.09
144.28
163.91





Prior Years Income/Expenses
--
--
--
--
--





Depreciation for Previous Years Written Back/ Provided
--
--
--
--
--





Dividend
--
--
--
--
--





Dividend Tax
--
--
--
--
--





Dividend (%)
--
--
--
--
--





Earnings Per Share
2.29
2.03
1.76
1.63
1.85





Book Value
--
--
--
--
--





Equity
88.78
88.78
88.78
88.78
88.78





Reserves
--
--
--
--
--





Face Value
1.00
1.00
1.00
1.00
1.00






 For Titan there are many challenges to be faced in future which also includes restriction of direct Gold import on 180 days credit which is currently restricted to 90 days by Reserve Bank of India (RBI), if this is approved by RBI then margins of the company can further expand by 50 basis points (half a percent). Given these challenges, company's valuation of 27 times FY14 estimated earnings appears bright and rich.

We may not see huge upside from current levels in future but one can consider it to be a part of their portfolio for normal gains.

Note : TITAN INDUSTRIES is a Shariah Compliant stock also and hence those investors who are following shariah guidelines can also invest in this stock. Its Ethical to invest in this particular stock as of today 31st January, 2013. We will update if this stock is removed from the list of Shariah Compliant Companies.

Wednesday, January 30, 2013

Titan Industries Trading Strong in Today's Trading Session on Stock Exchange

We had recommended Titan Industries in our post on 15th January, 2013 for a target of Rs. 286. Unfortunately it touched a low of Rs. 264.71 in last week trading session. Keeping in mind company's strength many investors kept holding the stock. The stock is in focus today ahead of its quarterly results which will be announced today. The company is likely to report a net profit of Rs. 205 crore, estimated to be 25 percent up from last quarter. Titan Industries is trading at Rs. 276 up nearly 2 percent on Bombay Stock Exchange. So hold on for some more time and wait for the action. We are sure that it will cross 280 in next few sessions because of its good results.

Note : TITAN INDUSTRIES is a Shariah Compliant stock also and hence those investors who are following shariah guidelines can also invest in this stock. Its Ethical to invest in this particular stock.

Thursday, January 17, 2013

Will the market hit 23000 in 2013 ?



Even at 20,000 the benchmark BSE Sensex is nowhere close to its historical peak valuations of around 22 times earnings. The last time it came close to these valuations was in 2007 and 2010. But this time around a considerable rise in earnings growth shows an upside in valuations even at Sensex 20,000 levels. No wonder, global fund managers see 2013 being a fabulous year for emerging markets like India. But there cannot be anything riskier than considering these opinions to be all encompassing. Learn 10 steps to Profitable Trading in Stock Market for US Investors

The Sensex' rise up to near 20,000 levels has been driven by just a handful of sectors. Prime amongst them being realty, FMCG, consumer durables, auto and healthcare. Now, one can argue that evergreen sectors like FMCG and healthcare tend to find favour when the going gets tough for the economy. But the earnings of realty and auto sectors are not just cyclical. They even react sharply to fall in economic buoyancy. The realty sector in particular also carries the burden of high leverage. This can be poison at a time when cash flows get strained. Anchoring to the possibility of lower interest rates fuelling demand can only take realty and auto sector valuations so far. In fact at price to earning (P/E) valuations in excess of 20 times, we believe investment in each of these sectors warrant caution. Nevertheless a careful look at long term fundamentals could help investors hunt bargains even in these sectors. 


 
 Note: The PE multiple for BSE Healthcare Index is steep due to the extraordinary losses incurred by Dr Reddy's and Sun Pharma which impacted the sector's trailing 12-month earnings.

 Whether or not 2013 turns out to be a fantastic year for Indian stock markets, valuations will eventually run the course of reversal to the mean. Hence use 'margin of safety' to guide you in both directions. Not just in selecting 'what to buy' but also judging 'when to sell'. 

Source Google Finance.

 The market has reached where it was 2 years ago, this suggests we are on an upswing. Although anything could happen lets be optimistic about it.