Nomura has initiated coverage on Titan Company Ltd with a buy rating and a target price of ₹4,275, arguing that the company’s structural growth story remains firmly intact despite near-term softness. The brokerage said that most of the headwinds that weighed on the stock are now largely behind, with both sales and margins beginning to reset to a new normal.
While Nomura expects the upcoming Q2FY26 results to be weak, it sees this as a favourable entry point, with recovery likely from the second half of the fiscal year. Over the medium term, the brokerage projects Titan to deliver a compound annual growth rate (CAGR) of 24% in earnings per share between FY26 and FY28, supported by its strong positioning in jewellery, watches, and eyewear.
Nomura added that Titan remains better placed compared to peers on a risk-adjusted basis, thanks to its brand equity, distribution strength, and premiumisation strategy. At its current valuation of 60 times September 2027 estimated earnings, the stock trades in line with its 10-year historical average, which the brokerage said provides comfort given the growth runway ahead.
Disclaimer: The views and recommendations made in this article are those of Nomura. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
