Shares of Titan Company are poised to open with gains on April 8 following its robust performance in the fourth quarter of FY24. The Tata Group firm reported a strong revenue growth of approximately 17 percent year-on-year and expanded its retail network by adding 86 outlets, bringing the total to 3,035 stores. Analysts remain bullish on Titan stock, foreseeing up to a 20 percent upside from its April 5 closing price.
Centrum Broking expects Titan to maintain its operating margin despite intense competition in the jewellery sector, citing its competitive edge in design and sourcing, as well as higher ticket sizes and improved studded ratio. With a focus on enhancing wedding sales contribution in the south, the brokerage maintains a ‘buy’ rating on Titan with a target price of Rs 4,255 per share, implying a 58.1x FY26 EPS.
Titan’s India Jewellery business saw remarkable 19 percent growth, driving overall revenue expansion. Both buyer and same-store sales in the jewellery division experienced double-digit growth, while watch sales increased by 6 percent year-on-year. Eyecare revenue declined by 1 percent but maintained a steady five-year CAGR of 5 percent. Emerging businesses, including Caratlane, recorded a robust 24 percent YoY growth.
Morgan Stanley maintains an ‘equal-weight’ rating on Titan with a target of Rs 3,290 per share, while CLSA anticipates a strong standalone revenue growth of 17 percent YoY, particularly in the jewellery segment, projecting an 18 percent YoY growth. Watches and wearables are forecasted to grow by 6 percent YoY, with eyecare expected to contract by 1 percent. CLSA has a ‘buy’ rating on Titan with a target price of Rs 4,574 per share.
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