Titan shares witnessed robust investor interest on Friday after the company recorded a double-digit surge of 13% in profit figures in the quarter ending March. Titan's consolidated revenue surged by 19% year-on-year (YoY) to Rs 149.2 billion, higher than estimates. Jewellery sales also witnessed a healthy growth of 20% YoY to Rs 132,5 billion (Excluding bullion sales).
At 12:10 pm, Titan shares were trading at Rs 3,502 price level, up by 3.94% on the National Stock Exchange. This momentum came in despite a sharp decline in broader markets. The NSE Nifty 50 index declined by over a per cent or 236 points.
However, bullion sales took a hit and declined by 23%, probably owing to higher gold prices. Meanwhile, its subsidiary firm CaratLane's sales surged over 23% YoY. The overall number of jewellery stores grew by 16% YoY to 1,901. Margins also remained healthy, marginally beating the estimates. Consolidated gross margins expanded by 50 bps YoY to 22.8% in Q4. Ebitda margins surged by 80 bps to 10.3%.
"Standalone jewelry EBIT margin (excl. bullion) contracted 20bps YoY while expanded 90 bps QoQ to 11.9% (est. 11.2%). However, there is some impact of the elimination of primary sales on its subsidiary. Adjusting for that impact, EBIT margin came in at 11.6%. CaratLane’s EBIT margin expanded 90 bps to 7.9%," Motilal Oswal stated in a report.
What Analysts Say?
D-street analysts remain optimistic over the stock with its strong competitive positioning. Motilal Oswal has reiterated its 'Buy' rating on the stock with a target price of Rs 4,000. "The brand recall and business moat are not easily replicable; therefore, Tanishq’s competitive edge will remain strong in the category. The store count reached 3,312 as of Mar’25, and the expansion story remains intact," the brokerage said.
JM Financial has upgraded its stock rating from 'Hold' to 'Buy' with a revised target price of Rs 3,725 from Rs 3,550 earlier. "Correction in gold price, if any, will be favourable and will result in an increased number of buyers and improved margins. The management has maintained its Jewellery EBIT margin guidance of 11-11.5% and is targeting high double-digit revenue growth for the next few years," the brokerage said in a report.
"Given continued demand momentum, we are tweaking FY26/27 revenue estimate by 4%/5% and PAT estimate by 2%/5%," Nuvama said. The brokerage firm has also maintained its 'Buy' rating with a revised target price of Rs 4,541.
