Citi has maintained a ‘Neutral’ rating on Titan Company Ltd with a target price of ₹3,900, reflecting a moderate upside from current levels. The brokerage noted that revenue (excluding bullion) grew 17% year-on-year, which was 2% below its estimates, while EBITDA and PAT rose by 35% and 34% YoY, respectively—13% and 9% above estimates.
However, adjusting for a one-time gain of ₹1,000 crore, the adjusted PAT growth stood at 24% YoY, in line with Citi’s expectations. Jewellery EBIT margin (adjusted) came in at 11%, also aligning with estimates.
While the near-term growth outlook remains strong, especially when compared to other discretionary segments, Citi expressed caution on the medium-term margin and profitability outlook. The brokerage highlighted elevated competitive intensity, higher gold prices, and an adverse product mix as potential headwinds.
Disclaimer: Views expressed are those of Citi and do not constitute a recommendation by this platform. Investors should consult their financial advisors before making investment decisions.
