The share price of Large-cap gained 1 percent Rs 3,429 on Wednesday which is 52 weeks high after the company announced its approval from the Competition Commission of India (CCI) to purchase an additional 27.18 percent stake from a company.
Titan Company’s board of directors has approved the acquisition of the entire 91,90,327 equity shares held by the founder of CaratLane Trading Pvt Ltd and his family members, representing 27.18 percent of CaratLane’s total paid-up equity share capital.
Titan increased its stake in CaratLane to 98.28 percent from 71 percent for a total of 4,621 crore. In addition, Titan paid ₹357.24 crore in 2016 to purchase a 62 percent share in the omnichannel jewellery retailer CaratLane. After that, it kept growing its ownership position in the business.
The company has reported its net revenue rose 25 percent year on year from Rs 8,567 crores in Q2FY23 to Rs 10,708 crores in Q2FY24. On a quarter-on-quarter basis, their revenue decreased 1.3 percent from Rs 10,851 crore in Q1FY24 to current levels.
In addition, net profit rose 9.7 percent year on year, from Rs 835 crores in Q2FY23 to Rs 916 crores in Q2FY24. On a sequential basis, their net profit rose by 21 percent from Rs 756 crores in Q1FY24 to current levels.
The company’s promoters hold a 52.9 percent stake in the company, with 19 percent owned by foreign institutional investors, 18.0 percent owned by the general public, and 10 percent owned by domestic institutional investors.
Titan Company is a large-cap company with a market capitalization of Rs 3,01,354 crores. It also has a return on equity (ROE) of 30 percent and a return on capital employed (ROCE) of 27.4 percent.
The share price of Titan Company has increased by 26 percent in the last six months and by 33.5 percent year to date.
Titan Company Ltd is a well-known lifestyle brand in India. It has established leadership positions in the Watches, Jewellery, and Eyewear categories, owing to its trusted brands and differentiated customer experience. It was established in 1984 as a joint venture between TATA Group and Tamilnadu Industrial Development Corporation (TIDCO).
Written by Sriram KV
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