Is Titan's share overvalued? Titan Company overview.

Is Titan's share overvalued/overpriced? 
Image source: GoodReturns

The company has given 7.64% returns in the last month,17.8% returns in the last 3 months, 38.91% returns in one year, 129.78% returns in three years, and 321.63% returns in 5 years. 

The company's yearly sales increase of 33% exceeded its three-year CAGR of 13.16%. 

The stock returned 129.89% over three years, compared to a return of 60.42% for the Nifty 100.

The data completely indicate that the company's growth and return that they generate for the investor are massively outstanding. Can we invest from this point? 
let's figure out the expenses of the company.
In the fiscal year that ended on March 31, 2022, the company spent 4.68% of its operating revenues on employee costs and less than 1% on interest charges. 
This indicates that companies' internal expenses are very well managed and comparatively very low.

Titan Company Ltd. is the fifth-largest watch manufacturer in the world and the top watch manufacturer in India. The company specialises in the production of watches, jewellery, precious metals, and eyewear. They manufacture watches under numerous brand names, including Titan, Fastrack, Sonata, Nebula, and Raga. Jewellery under Tanishq and Caratlane. 
Image source: Trade Brains

This indicates that, Titan is very well managed and it is expanded in a very well luxurious market. So now, we will see to what extent the luxurious market will grow in the upcoming future.

According to fortune business insights, the global market size was $360 billion in 2019 and this may reach up to 352.84 billion dollars by 2027 at a CAGR of 6.7%. 

Titan also said it is aiming for a growth of 2.5 times in its flagship jewellery business in the next 5 years it plans to add over 600 stores across 300 cities in the next 3 years.
( Date of the announcement May 16, 2022 )

All of you also know that everyone is going to buy more and more luxurious things in the future. The salary in the economy will grow and people will also spend on these luxurious items, so there is a wide market ahead.
There is no issue with the company's profits, operating profit margins, revenues and EPS. 
Companies fundamentals are very good growing every year. 

 The PE indicates that the stock is at a very sensible price to buy for the long term as well as midterm also. 
Recently Mr Rakesh Jhunjhunwala also purchase and he was increasing his stake in Titan. 
Now everyone can take a call according to their risk management. 
This is not a stock recommendation this is purely for educational purposes. 

MITHILESH

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