Shares of Titan, the Tata Group’s jewellery-to-eyewear brand, jumped 4% in Monday’s trade, 10 August, to reach a fresh all-time high of ₹5,122 apiece, following the company’s upbeat performance in the June quarter.
The rally has also received support from analysts, who have maintained a positive outlook on the company’s growth prospects and raised their earnings estimates.
Analysts raise Titan targets on strong growth outlook
Motilal Oswal remains constructive on growth in the jewellery industry, particularly among the top players, and believes Titan will remain well-positioned competitively, supported by initiatives such as its exchange programme. Apart from industry formalisation, stability in gold prices could further improve margin visibility for Titan.
The brokerage projects a CAGR of 18% in sales, 22% in EBITDA, and 25% in APAT over FY26-28E and reiterates its ‘Buy’ rating on the stock with a target price of ₹6,000, based on 60x September 2028E EPS. The stock continues to remain one of its top picks in the space.
According to an Economic Times report, Citi has maintained its ‘Buy’ rating on Titan Company and raised its target price to ₹5,700 from ₹5,075 earlier, implying an upside of around 15% from the current market price of ₹4,943.
The brokerage said jewellery revenue and EBIT growth remained strong after excluding bullion sales and one-offs and expects Titan to deliver healthy double-digit revenue growth irrespective of gold price movements.
Thus, the brokerage has also raised its FY27-29 EPS estimates and rolled forward its target multiple, supporting the increase in its target price to ₹5,700.
Meanwhile, Nuvama has downgraded Titan Company to ‘Hold’ from ‘Buy’ following the stock’s recent rally, while raising its target price to ₹5,241 from ₹5,030, according to an Economic Times report.
The revised target implies an upside of around 6% from the current market price. The brokerage has made minor changes to its estimates, trimming FY27 and FY28 revenue projections by 0.5% each, while adjusting its PAT estimates by -0.6% and +0.3%, respectively.
Nuvama has also flagged risks related to the existing 10% customs duty on gold. It noted that a reduction in the duty could affect the current dynamics, while a further increase could negatively impact Titan, the report said.
Titan Q1 Results
For the June-ended quarter, the company ₹1,777 crore”>reported a 63% year-on-year (YoY) jump in consolidated net profit to ₹1,777 crore, driven by steady demand in its jewellery business, while the watches segment also remained a key growth driver.
In the corresponding quarter last year, the company had reported a net profit of ₹1,091 crore. On a sequential basis, net profit also improved from ₹1,179 crore reported in the March quarter.
On the top line, the company reported consolidated revenue from operations of ₹20,787 crore during the quarter, registering a 40% YoY increase from ₹14,814 crore in the corresponding quarter last year.
The jewellery segment, which accounts for over 80% of the company’s revenue, recorded 43% YoY growth to ₹18,253 crore, excluding bullion and digital gold sales, driven by healthy growth in its India business.
In the watches segment, the business had a strong quarter, recording 24% growth over Q1FY26, with total revenue reaching ₹1,273 crore. The eyewear business also maintained strong momentum, with revenue rising 21% YoY to ₹289 crore, supported by premiumisation and targeted marketing initiatives.
At the operating level, EBITDA rose 57% YoY to ₹3,036 crore, while the EBITDA margin expanded by 247 basis points to 14.1%.
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