Should I buy more of Titan shares after the latest quarter results announced?

For the March quarter, Titan reported 14% growth in profits at Rs.348 crore. Total Income for the quarter also increased by nearly 20% to Rs.4945 crore. For the full year, the net profits were up by 25% at Rs.1388 crore. Titan jewellery business continued to do well as the shift to GST had led to a lot of customers migrating from the neighbourhood jeweller to organized players like Titan. Its recently launched eyewear business has also growth by nearly 24% in the fourth quarter.

The stock had fallen sharply after the lower guidance given in September this year and the liquidity short fall created. However, the stock has picked up sharply after that. If you are looking at a good play on the Indian consumer sector and combine it with Indian buyers’ appetite for gold on various occasions, then Titan must be an obvious choice. You can actually hold on to the stock at current prices. The stock is quoting at above 55X earnings but that is true of most consumer stocks in India. At least, downside risks are limited.