Wednesday, 5 September 2012

Incredible Stocks-Titan Industries Pt-1

Excuse me, what time is it? In response to this question you would normally twist your arm and look at your timepiece. But as a stock investor, have you ever thought of the value that watchmaker company must be having? Well, I would say the answer would be a NO.

We are not conditioned to think like that. Stocks as investment option is still treated with undue caution.
We know that the product we are using is a very useful and its brand recall value is high. We know that not only us, but a very large number of others buy the product. Still it never crossed our minds to think of investing the company which makes the product. Look around you. You will find many such products, many such companies. You may very well find a great stock option in one of these.

In this post we will cover one such stock – Titan Industries. Is this a good investment option?
We will try to find the answer with our Sector->Company->Market approach.

The consumer goods industry has a certain trait. It is a volume-based business. If a particular product enjoys the consumer's confidence then it is not difficult for it to become a big success. That is why any company which is in the consumer goods industry is very likely to become a good stock option for us investors. Take any company in the industry and its likely that the company has grown well in the past. In the coming years as the spending power of people increases, the growth also is likely to increase.

Now coming to the company. Titan Industries is a TATA enterprise.

Started in 1984 it presently ranks as the 5th largest integrated watchmaker in the world. Its successful products in this segment include Titan quartz, Sonata and Fastrack. It also brought international brands in India, like Tommy Hilfiger, FCUK and Xylys under licence for premium fashion watches and global brands. Titan industries has India's largest retail network.

Their other products include branded jewellery under the Tanishq brand, Fastrack eyewear and sunglasses and also prescription eye wear. Adding to the Tanishq brand is their GoldPlus offering which focuses on the preferences of semi-urban and rural India and also Zoya, a luxury retail chain.

In their own words, as the company continues to grow they are committed to repeat the success of Titan and Tanishq brands with each new offering.

To know whether it is a good stock, we need to take a detailed look. We will continue in the next post.