Bernstein has initiated coverage on Titan Company with an outperform rating and a target price of ₹4,200, highlighting the jewellery-to-watches major as the best placed to capture the increasing formalisation and contemporisation of consumer demand in India. The brokerage noted that Titan has delivered a storied legacy of 23% earnings per share compound annual growth over the past two decades, underscoring its long-standing execution strength and brand equity.
Despite this track record, Titan currently trades at a five-year low price-to-earnings multiple, weighed down by three recent controversies and headwinds. These include the rapid increase in gold prices, intensifying competition in the jewellery market, and the evolving dynamics between natural and lab-grown diamonds (LGD). Bernstein said these factors have temporarily capped investor enthusiasm but do not fundamentally alter Titan’s long-term growth drivers.
The brokerage forecast an 18% revenue CAGR and 25% EBIT CAGR over FY25–28, driven by steady market share gains in jewellery, scaling of newer businesses, and disciplined margin management. Bernstein believes Titan’s leadership position, strong balance sheet, and ability to adapt to shifting consumer preferences make it a compelling value opportunity at current valuations, with potential for re-rating as earnings momentum remains intact.
Disclaimer: The views and recommendations made in this article are those of Bernstein. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
