Prime Highlights
- UBS maintained a Buy rating on Titan and set a target price of ₹5,600, indicating a potential upside of nearly 28% from current levels.
- The brokerage expects Titan’s jewellery business to post another strong quarter, supported by robust demand and continued growth in both plain and studded jewellery segments.
Key Facts
- Titan Company is a Tata Group company with businesses spanning jewellery, watches, eyewear and lifestyle products.
- UBS expects Titan’s jewellery revenue to grow by 35%–40% in the current quarter, driven by sustained consumer demand and strong performance in the studded jewellery segment.
Background
Titan Company shares traded slightly higher after recovering from a weak opening, while a global brokerage reaffirmed its positive outlook on the stock and projected significant upside potential.
UBS maintained its Buy rating on Titan and set a target price of ₹5,600 per share. The brokerage believes the company is on track for another strong growth quarter, supported by healthy demand across its key business segments.
According to UBS, channel checks suggest that Titan’s jewellery division continues to perform well. The brokerage expects jewellery revenue growth of 35% to 40%, indicating that the strong momentum seen in the quarter ended March has likely continued into the current quarter.
The brokerage also pointed to the strength of the studded jewellery segment. After recording around 35% year-on-year growth in the March quarter, the category appears to be maintaining a similar pace in the current quarter. UBS considers this trend encouraging because the present quarter does not include a major studded jewellery promotion campaign, unlike the previous quarter.
UBS further noted that consumer demand has remained resilient despite concerns linked to customs duty changes. The watches business is also providing additional support to the company’s overall growth performance.
Market sentiment on Titan remains largely positive. Out of 37 analysts tracking the stock, 30 recommend buying the shares, while five suggest holding them and two have a sell rating.
Titan shares were trading marginally higher during early trade. The stock has delivered a gain of more than 8% so far this year, reflecting continued investor confidence in the company’s growth prospects.