People who are interested in the stock market and invest regularly are keen on the share prices of different companies. But all the company stocks are not alluring, and you should follow some particular ones only. Titan, the Indian jewellery and watchmaker, is undoubtedly one of them. How much is titan share price today? While knowing a company’s share price in one day isn’t beneficial, you should see the trend. So, let’s delve more into the latest trends in Titan stocks.
titan share price today
As of 26 May 2023, titan share price today is approx 2,744 today, up by more than 1% from yesterday. Though the market conditions can change anytime and prices fluctuate accordingly, Titan is seeing an upward trend. Evidently, from the trends, the company is receiving positive market sentiment. Therefore, if you need to decide on buying or holding Titan stocks, you should know further.
The company has seen an upward trend in the stock market for more than 18 months. It may face a lifetime high, indicate the stock market analysts.
The share price of titan has been around Rs. 2,200-2600 for the last few months and now has risen to Rs. 2,700. Experts presume that the prices are going to touch Rs. 2,900 soon.
About Titan Company
Titan is a company from the Tata Group, founded in 1984. It gained popularity primarily as a watchmaker. But now it sells products like eyewear, jewellery, bags, perfumes, wallets and belts.
- Titan Eyeplus
- Titan Engineering and Automation Limited
Almost 80% of the company’s total revenue comes from the jewellery segment, and it owns a 6% share in the jewellery market of India.
titan share price nse
titan share price nse has been high by 11% over the last three months. As per experts, the market rewards only strong financials in the long term. Still, there could be some concerns over Titan’s ROE, and therefore, it should be discussed thoroughly.
What is ROE?
ROE, or Return on Equity, evaluates how effective a company is in growing its value and managing the invested money. It’s the ratio of profitability to measure the company’s rate of return on the capital invested by the shareholders.
How to calculate ROE?
ROE = Net Profit ÷ Equity of the Shareholders
As of March 2023, Titan’s ROE is
28% = Rs. 33b ÷ Rs. 119b
The return is how much the company has earned after taxes in the past twelve months. So, Titan generates a profit of 0.28% on every 1 rupee the shareholders invest.
Relation between ROE and earning growth
So, ROE is crucial to measure a company’s profits, and how much these profits are reinvested determines its earnings growth potential. Firms that have higher ROE and profit retention enjoy a higher growth rate.
What about Titan’s ROE and earnings growth?
The ROE of Titan is high compared to the market average, and it becomes natural for the company to gain 22% net income growth in this scenario.
But this growth is similar to the industry’s average growth, and it’s nothing extraordinary.
Now, those excited over the higher share price of titan should check if the expected earning growth is built into the share price already. Then only the investors can decide whether Titan’s stock value prospect is ominous or promising.
Titan is efficiently reinvesting its earnings growth, which is prominent from its three-year median pay ratio of 29%. Its dividends are also covered impressively. The company’s payout ratio may increase to 38%, and it is committed to sharing profits with its shareholders. However, the ROE is not going to change much in future.
Reinvesting a large portion of profits shows substantial earning growth for Titan, which marks its performance as satisfactory. So, you won’t be wrong if you get impressed by the titan share price and buy it.