Our Target Acheived in Titan Industries Ltd.

Dear visitors,

Greetings and Good Wishes from Stockbouncers Team.

We once again did it. We had recommended a buy call on Titan Industries in our earlier post on 15th January, 2013 and reiterated the same on 30th January, 2013 to buy for a target of Rs. 286.

Our target achieved yesterday that is on 1st of Feb, 2013 when the stock touched an intraday high of Rs. 287.85 on Bombay Stock Exchange (BSE).

AnalystS are positive on this stock and see the rally to continue till Rs. 296 in a very short period of time. We still advise to hold on till it crosses Rs. 290 levels. Once it break this barrier, Rs. 296 target is very much possible.

We will provide you more fundamental stock tips in future also. We wish all our visitors best of luck and may you all gain good in your investments always. Keep visiting our blog and support us. Thanks to all.

Note : TITAN INDUSTRIES LTD. 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.

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.

TITAN Industries BUY it

Buy and Hold TITAN INDUSTRIES at current levels of Rs. 275.8 for a short term target of Rs. 286 with a stop loss of Rs. 268. Strong company with good fundamentals.

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.