The shares of Titan, Timex, KDDL, and Ethos have seen notable declines today, largely in response to the recent recommendation by the Group of Ministers (GoM) to increase the Goods and Services Tax (GST) on luxury wristwatches priced above ₹25,000. The GoM suggested raising the GST rate on these high-end watches from 18% to 28%, which has triggered concerns in the luxury watch sector, affecting the stocks of companies with significant exposure to premium watch sales.
- Titan Company was down by 0.43%, trading at ₹3,366.90.
- Timex Group declined by 1.08%, with the stock priced at ₹128.
- KDDL shares fell 1.52%, standing at ₹2,842.
- Ethos Limited shares experienced a drop of 5.58%, priced at ₹2,925.90.
The impact of this proposed GST hike has resulted in cautious investor sentiment toward these companies, especially given their reliance on luxury watch sales.
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Titan Company Ltd: Titan Company Ltd, a leading player in the Indian lifestyle industry, began as a watch company and has since diversified its portfolio extensively. The company now boasts brands across various categories, including jewellery, wearables, eyecare, fragrances, and fashion accessories. Some of its notable brands include Tanishq, Zoya, Fastrack, Sonata, SKINN, and Taneira.
Established in 1984 as a joint venture between the Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO), Titan initially focused on watch manufacturing under the name Titan Watches Ltd. The company rebranded to Titan Industries Ltd in 1993 and launched its flagship jewellery brand Tanishq in 1994, later expanding into the eyewear segment with Titan Eye+ in 2007. Titan’s Fastrack brand, targeting the youth, was launched in 1998, marking its entry into the fashion accessories space.
Today, Titan is a major player in the premium and luxury lifestyle space. However, the company’s shares have been impacted by the recent GST hike on luxury watches priced above ₹25,000, contributing to a decline of 0.43%.
Timex Group India Limited: Timex Group India Limited, an India-based company, operates primarily in the manufacturing and trading of watches while providing after-sales services. The company offers a wide range of products, from luxury statement pieces to functional everyday watches. Its diverse portfolio includes globally recognized brands such as Timex, Guess, Versace, Salvatore Ferragamo, and many more.
The company serves as the Original Design Manufacturer (ODM) for several brands, including Wrogn, Van Heusen, and Allen Solly, offering a comprehensive selection of timepieces. Its distribution network spans a variety of channels, including distributors, franchise-operated brand outlets, e-commerce, and modern trade stores.
Despite the company’s expansive product range and strong market presence, Timex’s stock has been affected by the recent recommendation to increase GST on luxury watches, leading to a 1.08% decline today.
KDDL Limited: KDDL Limited is an Indian engineering company primarily engaged in the manufacturing of watch components, including dials, hands, and precision engineering components. In addition to its manufacturing business, KDDL is also involved in trading luxury watches through its subsidiary, Ethos Limited, one of India’s leading luxury watch retailers.
KDDL operates multiple segments, such as precision components, watch accessories, and packaging boxes. Its manufacturing facilities are located in Parwanoo, Derabassi, and Bangalore, providing a strong foundation for its engineering and retail operations.
The stock of KDDL saw a decline of 1.52%, impacted by the government’s proposal to raise GST rates on high-end watches.
Ethos Limited: Ethos Limited, one of India’s leading luxury and premium watch retailers, operates 63 stores across 24 cities, offering more than 65 global luxury watch brands. The company focuses on providing a high-end retail experience, both online and in-store, showcasing over 7,000 premium, bridge-to-luxury, luxury, and ultra-luxury timepieces.
Ethos retails some of the world’s most prestigious brands, including Rolex, Alpina, Breitling, BVLGARI, and Bell & Ross, catering to various market segments. Its watch collection includes automatic, mechanical, quartz, tourbillon, and chronograph models, among others.
The recent proposal to raise the GST on luxury watches has weighed on Ethos’ stock, which fell by 5.58% today. The potential impact of the GST hike has raised concerns about the affordability of premium watches in the Indian market.
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