Titan - The Golden Stock

In depth understanding of a companies business can help invest with conviction. But many a times we judge a company by its name and make a token investments. And only when the stock prices rally many fold we realize that the missed opportunity. Here is an example with TITAN as case study:

• TITAN is a TATA Group company
• The growth of a company is similar to human growth - being born as baby - growing up gradually and maturing as an adult.
• TITAN was a penny stock 20 years back
• To understand the companies businesses, it is best to visit their websites and then ready their annual reports. 
• Many of us assume a company's business linked to its brand - for instance TITAN Watches is a dominant brand.
• But TITAN is in following businesses:
• Watches - own brand and premium watches like Tommy Hilfiger
• Accessories like Belts, Wallets, Wireless wearables and 
• TITAN Eye Plus 
• Tanishq
• Indian Dressware, Fashion and Fragrance.
• In Fy 2022-2023, Q1 results - the companies revenues tripled to Rs.8.90 Billion Vs 3.20 Billion a year ago.
• YOY, Watches and Wearables posted 169% growth of Rs. 7.80 Billion, while Jewellery posted 208% growth.
• Indian dressware, fashion and fragrance posted 300% growth. 
• The company added 125 new stores last year
• A lumpsum investment of Rs.1 Lakh in 2002 would have grown to Rs. 2.07 Crores today. 
• Similar investment in Sensex would have grown to Rs.19.04 Lakhs.
• And an investment in Bank FD at 7% would have grown to Rs.4.66 Lakhs
• That's 44 times return against Bank FD and 11 times Sensex returns.

To sum up,

• Understanding a company - by its business, background, promoters credibility and business opportunity - can give us confidence to invest sizably. 
• It is better to invest incrementally since any stock can go through price cycle. As an investor you can take advantage of lower price to increase your stake in the company.
• Having invested, we need to keep track of the companies growth in net profits etc and not by share price appreciation.
• As evident from above price chart, the price did fluctuate or remained stagnant at times. Stay calm and keep investing.
• Frequent profit booking or panic selling tampers the growth prospects of our investments. 
• While many advocate index investing to be the best option, identifying and investing in a good stock like titan can grow your money many fold.