The TEN Commandments Of Titan, Kalyan And Gold: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.In this report, we analyse data of past 15 years to decode how Titan Company Ltd.’s jewellery business is intertwined with the fluctuations of gold commodity prices. Read on for our TEN commandments of Titan and Gold. Key observations:A secular rise in gold price brings more tailwinds (1% rise in gold price leads to 2% increase in Ebit than headwinds, as: demand for wedding jewellery is relatively inelastic in value terms; making charges paid by Titan consumers are linked to gold price; and Titan hedges its gold price exposure completely. Rise in gold price has negative correlation (-0.8) with volume per store of Tanishq; however, the impact on volume is offset by higher realisation, as making charges are linked to gold price.High volatility in gold price (versus secular increase) has negative impact on consumer demand, as customers prefer to postpone buying in expectations of lower price.Gold price inflation led to higher competitive intensity driven by inventory gains by organised/unorganised players, which has a lower proportion of hedges (versus 100% hedge at Titan). .Key risks: Increased gold price volatility, and higher-than-expected rise in competitive intensity in jewellery..Click on the attachment to read the full report:.Coal India - Volume Growth Outlook Remains Robust: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

The TEN Commandments Of Titan, Kalyan And Gold: ICICI Securities

Titan’s stock price has demonstrated a strong correlation of 0.9 with gold prices over the past ~20 years.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

The TEN Commandments Of Titan, Kalyan And Gold: ICICI Securities

Titan’s stock price has demonstrated a strong correlation of 0.9 with gold prices over the past ~20 years.

Choose a plan

Follow Us

DOWNLOAD THE APP