Amit Jeswani is fast emerging as a sane and logical voice in the Indian equity market. Unlike other equity advisors who preach value investing, but prefer investing in the real estate and fixed deposits—he puts his own skin in the game by putting his own money in the same stocks. Recently, he shared his candid views on the possible impact of Nirav Modi fallout for Titan.
The fall of Nirav Modi and Mehul Choksy has created a storm of sorts in the country—but does this bring opportunity for Titan. Will more and more players start shifting to Titan because of the reputation it commands in the jewellery market?
Absolutely! tells Amit Jeswani in the Bloomberg Quint during the Hot Money programme. There are three types of risks—business risk, company risk and valuation risk.
75% of the jewellery industry is unorganized and only 25% of the industry is organized stores such as Titan, PC Jewellery and others. Since Nakshatra and Gitanjali Gems are out of business, the shift in the organized jewellery sector will start taking place and existing players like Titan will benefit the most.
Even after demonetization and GST, they are consistently growing at the rate of 35%-38%. But this stock is not cheap at all as it trades on 73 times of FY 18 earnings. So you can get into it after some correction into it.