Titan Q1 business update: Titan Company shares climbed nearly 4% to hit a record high of ₹4,655.90 after the Tata Group company, which is also part of Rekha Jhunjhunwala portfolio, reported a stronger-than-expected business update for the June quarter. The robust operational performance prompted multiple brokerages to reiterate their bullish stance on the stock.
Titan reported 41% year-on-year (YoY) growth in its consumer businesses during the first quarter of FY27, driven by strong demand across jewellery, watches, eyecare and emerging businesses. Its domestic business grew 37% YoY, while international operations surged 128% YoY. Titan also expanded its retail footprint by adding 77 stores during the quarter, taking its total retail network to 3,680 stores.
The stock is currently trading around 41% above its 52-week low of ₹3,301.05, touched in July last year. Titan has also delivered positive returns across multiple timeframes, gaining 9% in one month, 10% in three months, 9% in six months and 27% over the past year.
Rekha Jhunjhunwala holds a 5.31% stake in Titan Company Ltd., owning exactly 4,71,84,470 shares. Her massive holding in the Tata Group company is her largest single investment, valued at approximately ₹21,172 crore.
Brokerages remain positive on Titan
Brokerage firms remained upbeat on Titan after the company’s June quarter business update, citing broad-based growth across key business segments and better-than-expected operational performance.
CLSA maintained its ‘Outperform’ rating on Titan with a target price of ₹5,249. The brokerage highlighted that the company’s domestic business grew 37% YoY, ahead of its estimate of 32.6%. It noted that the domestic jewellery division expanded 39% YoY, with Tanishq, Mia and Zoya (TMZ) posting 39% growth against its estimate of 35%, while CaratLane registered 42% growth.
CLSA added that buyer growth remained in the early double digits, while average ticket size increased by high double digits. The plain and studded jewellery businesses recorded growth in the mid-thirties, while the watches segment accelerated to 23% growth. Eyecare also delivered a multi-quarter high growth of 23%, and the international business continued its strong momentum with 128% growth.
HSBC reiterated its ‘Buy’ rating on the stock. The brokerage said Titan’s core TMZ business delivered 39% YoY growth during the first quarter of FY27, ahead of its estimate of 32%. It also highlighted favourable buyer growth and an improving studded jewellery mix. According to HSBC, headwinds related to regulatory uncertainty are gradually fading, making Titan its preferred pick in the consumer discretionary space. The brokerage also raised its earnings per share (EPS) estimates by around 1%, led by the strong performance of the jewellery business.
Nomura also maintained a ‘Buy’ rating with a target price of ₹5,000. The brokerage said Titan’s strong performance continued in the first quarter of FY27, with all major businesses performing well. It noted that the domestic jewellery business, including CaratLane, delivered growth above expectations.
The domestic watches business significantly outperformed estimates, while the domestic eyecare segment also posted better-than-expected growth. Nomura added that Titan’s international business continued to register strong growth during the quarter.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
