Identifying Multibaggers: Titan replaces Educomp inTheEquityDesk XI

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Titan replaces Educomp inTheEquityDesk XI

Printed From: The Equity Desk
Category: Market Strategies
Forum Name: Identifying Multibaggers
Forum Discription: Discuss specific attributes that investors could look at while choosing multibaggers. Also point out certain factors that investors tend to overlook while finding multibaggers.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=965
Printed Date: 19/Apr/2025 at 3:21am

Topic: Titan replaces Educomp inTheEquityDesk XI

Posted By: basant
Subject: Titan replaces Educomp inTheEquityDesk XI
Date Posted: 11/Jun/2007 at 8:39pm

We are replacing http://www.theequitydesk.com/forum/forum_posts.asp?TID=142 -

Replies:

Posted By: smartcat
Date Posted: 11/Jun/2007 at 12:12pm

Let's just say you recommend 'booking profits' in Educomp.

So now we have one more retail company in Equitydesk XI. Would it make more sense to compare Titan with Shopper's Stop or Gitanjali? Am I right in assuming that PEG ratio of Titan is more than 1? (overvalued, as they call it).

Jewellery sales and possible growth in eye care business - are these the future triggers?

Posted By: basant
Date Posted: 11/Jun/2007 at 10:13am

Organized jewellery market is just 4% of the total jewellery market. The total scale of opportunity is around Rs 50,000 crores! In that http://www.theequitydesk.com/forum/forum_posts.asp?TID=309 - Titan thread I have listed the advantages of this business model. The main is the competitive advantage that the Tata name has been able to develop.

Unlike Pantaloon http://www.theequitydesk.com/forum/forum_posts.asp?TID=309 - Titan is not a 50% + grower. Gitanjalli and Shopper STop are non comparables. The former is not the leader and also keeps diluting equity; the management is also not the best since they are going all across the globe in acquiring companies whereas the opportunity is in the demographic story out here.

Shopperstop on the other hand is largely a upmarket business model. if you see the financials it is costlier to Pantaloon. http://www.theequitydesk.com/forum/forum_posts.asp?TID=309 - Titan on the other hand has a definetive niche people in the younger age bracket would buy from a Tanishq rather then from the old family jeweller!!!

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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

Posted By: vivekkumar_in
Date Posted: 12/Jun/2007 at 2:32am

Will Titan be able to show a higher Op. margin than other retailers like PRIL ?

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Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.
P Lynch

Posted By: tigershark
Date Posted: 12/Jun/2007 at 8:19am

at the current price of 990-1000 titan trades at 35 times its 08 earnings based on an assumption that it will do a bottomline of 127 crs.so it trades at multiple equal to its growth rate. now does that make a good investment.basant could you pl elaborate

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understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things

Posted By: basant
Date Posted: 12/Jun/2007 at 9:54am

The visisbility for the growth rate is longer and also Titan could grow at closer to 40%. SUrely there are no multibaggers here but when you compare it with a Educomp it does look better from the risk reward angle.

If I had to buy any stock with equal PEG I would choose the one with lower growth and lower PE because finally all companies wil have to come down to the lower growth level.

Posted By: vivek.650
Date Posted: 14/Jun/2007 at 5:29pm

It is good to include in XI but what is the future visibility of EDUCOMP solution as for as NP is concern ?Thanks.

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vivek

Posted By: basant
Date Posted: 14/Jun/2007 at 11:58pm

The risk reward looks unfavourable.

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