Titan stands tall

there are many ways to classify stocks. by their size or market capital, by their category, by their growth prospects, and more. one such classification is seasonal or cyclical stocks, for example those related to the agriculture industry. but one unexpected name that can be added to that list is one of India’s top luxury products maker, Titan. the Tata-owned jewellery, watches, and eyewear maker had a stellar last quarter of 2021, and is being rewarded by the markets. as of January 10, its stock price had added over 5% since the turn of the year, and sat at a lifetime high of Rs 2,657/share.

will the good times last in the year ahead?

festive shine

the rally was sparked by Titan’s Q3 FY22 report card, wherein it declared a 36% growth in revenue over the corresponding quarter of the previous year. this was driven primarily by its jewellery division, which accounted for over 85% of its revenue for H1 FY22 (April to September 2021), reporting a 37% growth in revenue on the same comparison. the company attributed this to a bump in sales over the festive period of October and November.

meanwhile, the eyewear division reported a 27% year-on-year jump in revenue for the quarter. Titan further added that this growth was driven by sales of sunglasses and frames with an uptick in demand also seen in international brands. the company's watch and wearables division reported a 28% year-on-year growth for the quarter.

growing larger

these stellar performance numbers were supplemented by the fact that Titan is further growing its presence and offerings. its eyewear division added 50 new stores in the quarter, while the watch and wearables division added 20. these are focused more towards tier 2+ cities as it seeks to expand its network and customer base. meanwhile, the jewellery division increased its net store count by 14 in Q3 FY22, including the opening of 2 new stores in Dubai.

among the new product offerings are smart watches and smart glasses, which are focused on a health-conscious audience. wearable technology has proven to be a high growth opportunity category for giants in the tech industry ranging from Apple to Xiaomi, and Titan is gunning for a chunk of their profits. another noteworthy innovation worth mentioning is perhaps the fog-free lens, which promises to allow bespectacled individuals to wear a mask without impairing their vision.

Titan is not only outdoing its previous year’s performance, but also its peers. with the notable post-pandemic trend of large players making gains while smaller ones get weeded out, there might not be too many better bets to make in the Indian luxury sector.