What will happen if I hold Titan stock for 5 years?

The Titan stock has been a multibagger and given a return of 200% in the past 5 years.

The Titan stock has been growing on the back of

1. Growing appetite for Gold Ornaments
2. Demand for trendy eyewear and fashionable watches
3. Inclination for High-Quality Perfumes

These are avenues where demand will remain strong on the back of a growing middle class and higher incomes.

Another booster for a company like Titan is

Having said this, the concerns for the stock are

• Valuations (P/E > 75)
• Pressure on profit margins owing to competition from organized & unorganized players
• Disruption in supply chain owing to geopolitics
• Decline in demand on the back of job market stagnation

Considering these points, we can say with some certainty regarding the coming 5years:

• The stock will not be able to match the growth of the last 5 years owing to valuations that are way above the on the ground earnings
• If the company diversifies into newer areas and is able to utilize the Tata ecosystem aptly, it will be able to sustain/improve the Earning Per Share (EPS)

Hope this helps

Follow me for more info on Astrology, Finance, and other topics

God Bless!