Titan valuations on higher side; investors need to be cautious

The stock hit an all-time high; tie-up with American watchmaker likely to be a positive in the long term

The stock of Titan Company hit its all-time high on Tuesday at Rs 1,096 apiece before closing at Rs 1,083; 1.4 per cent higher. While the gains came at a time when the broader indices are on an uptrend, investors are positive on Titan given the healthy earnings visibility.

Besides strong operational performance, the strategic alliance of the jewellery major with American watch manufacturing company FTS USA (Fine Timepiece Solutions) LLC, announced on Monday, adds to the earnings outlook. As per Titan, it will supply movement kits and set up of the movement assembly facility for FTS USA under the tie-up.