It is a bloodbath out there. The Indian stock market is getting hammered, with billions already wiped out. Market experts are calling it the biggest correction the market has seen in decades. No wonder investors across the board are panicking. It’s natural, because even the most favourite stocks of many have taken huge hits.
But there are always some investors not really bothered of these situations. They do not play by the book that most other investors treat like the bible. We call them the ‘Warren Buffetts of India.’ One such women Warren Buffett of India is a name that needs no introduction, Rekha Jhunjhunwala. She carries forward the legacy of her husband Rakesh Jhunjhunwala.
One of her favourite stocks that she and husband Rakesh Jhunjhunwala have been holding for years is trading near 52-week lows. It would not be such a bad idea to find out all about this company.
Titan Company is a well-known name in India, when it comes to watches, jewellery, and eyewear. The company has a long history in India, starting back in 1984 as a partnership between the TATA Group and Tamil Nadu Industrial Development Corporation (TIDCO).
With a current market cap of Rs 2,68,384 cr, the Titan has brands like SKINN, Fastrak, Titan Eye+, Tanishq, Sonata, CaratLane etc under its belt.
As per the company’s latest investor presentation released in February 2025, the company in 2024 crossed Rs 50,000 cr GUCP (Gross Uniform Cost Price), which indicates that the company has achieved significant scale in terms of the volume of products it has sold, reflecting strong business growth and market demand.
It also crossed a 3,000 exclusive brand outlet milestone.
Rakesh Jhunjhunwala first started acquiring Titan shares way back in 2002-2003, when they were trading at just around Rs 4 (adjusted share price).
Since then, the Jhunjhunwalas have held stake in Titan, even though the holding percentages went up and down. That is a level of conviction that demands attention, given it comes from a name like Jhunjhunwala.
Currently his wife Rekha Jhunjhunwala continues to hold a stake in the company steadily. As of the quarter ending December 2024, she still holds 1.07% stake in the company. The percentage of holdings over the years have changed hands between multiple accounts of the Jhunjhunwala’s but they have been steadily invested in the company for over 2 decades now.
The share price of Titan was Rs 3,027 as of the closing on 10th March 2025, which is just a tad bit higher than its 52- week low of Rs 3,017. Here is how the share price has moved in the last decade:
The all-time high price the share has seen was Rs 3,887.
The company has also been a known name in making the most for every rupee spent as capital on the business. The current ROCE (Return on Capital Employed) of the company is about 23% and the 10-year average ROCE is about 25%.
This means that for every Rs 100 Titan spends on the business as capital expenditure, it makes a profit of about Rs 25 on it.
This money can then be used to busy more shares of the company from the market or give back to the investors by means of dividends.
No wonder the company has been maintaining a healthy dividend payout of about 28%.
If we look at the financials, the company’s sales were at Rs 19,779 cr for FY19, which jumped to Rs 51,084 cr in FY24, which is a compounded growth of 21%.
In the 3 quarters for April 2024 to December 2024, the company has already recorded sales of over Rs 45,000 cr.
When it comes to net profits, Titan has seen a compounded growth of 20% in the last 5 years from Rs 1,389 cr to Rs 3,496 cr.
And between April 2024 and December 2024, the company has recorded net profits of Rs 2,466 already.
Titan did see a drop in profits for the quarters ending March, June and September 2024. However for the quarter ending December 2024, the profits saw a jump of about 48%. To which CK Venkataraman, Managing Director, Titan Company, said, “The custom duty related losses on the inventory (held at the time of the duty change) have been fully realized in this quarter and hence the profitability is lower to that extent.”
Now let us look at the EBITDA (earnings before interest, taxes, depreciation, and amortization) which grew from Rs 1,994 in FY19 to Rs 5,292 in FY24, logging in a compounded growth of 22%. For the first 3 quarters of FY25 (April-Dec 2024), the company has already recorded an EBITDA of over Rs 4,100 cr.
As for the valuations, the company’s share is trading at a current PE of 83x while the industry median when compared to peers is 34x. The 10-year median PE for Titan is 74x while that of the industry is 21x.
The stock is trading at almost 28 times its book value which is Rs 110. This implies that investors are willing to pay quite a high premium to own Titan shares.
As per Titan’s last annual presentation, Managing Director C K Venkataraman said that international business is eyeing an impressive US$ 500 Mn in UCP (Uniform Consumer Price) value by the Financial Year 2026-27.
The company’s Chief Financial Officer, Ashok Sonthalia also wrote about the company’s growth plans. He said Titan will strengthen processes for efficient scale management, invest in technology, compliance, and risk management to enhance customer experience. He also said the company plans to dive into underserved markets with compelling offerings that resonate with every customer.
Apart from Rekha Jhunjhunwala Life Insurance Corporation of India also holds 2.17% stake in the company.
All that Glitters is Gold?
The financials of Titan company look strong and club that with the high ROCE and impressing dividend payout, we can assume safely that all this put together is the reason for the interest the Jhunjhunwala’s have shown in the company for all these years.
But one point worth noting is that about 80% of Titans revenues comes from Tanishq, its brand into premium jewellery. With the Lab Grown Diamond sector growing at a fast rate, this could turn into a threat of sorts for Titan, which is a known name when it comes to premium mined diamonds.
Lab grown diamonds cost 60%-70% less than mined diamonds and their demand has been on the surge in India as well as the export markets. It can go either way, if lab grown diamonds get more mainstream acceptance, their certification volumes will surge, pushing bigger market shares.
But if they become fashion accessories for the mass market, then it would be a completely different ball game.
But given that Titan has shown and even proved over years that it has what it needs to brave such weathers, it would make sense to add this company to your watchlist and keep a close eye on it, if you do not own it yet.
Disclaimer:
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, He was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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