Despite weak demand, Titan's glittering stock valuation unlikely to fade

Strong brand equity and network expansion will help the company gain market share, even as local unorganised players are struggling and many peers are facing demand and liquidity pressures

At a time when the overall consumption theme is losing sheen, Titan’s optimistic outlook has helped the firm gain investor trust, even as its March quarter (Q4) earnings missed expectations.

Therefore, the stock, currently valued at 54-55 times its FY20 estimated earnings, will continue enjoying higher valuation and deliver a decent upside, say analysts. In fact, it has risen over 6 per cent after its Q4 results (on May 8), as compared to a 1 per cent fall each in the Sensex and the BSE FMCG indices.

Amid several one-offs on account of provisioning for impairment of investments in a subsidiary as