Citi has maintained its Neutral rating on Titan Company with a target price of ₹3,800, implying a limited upside from the current market price of ₹3,670.00. While the company delivered a 17% year-on-year growth in standalone domestic jewellery (excluding bullion) in Q1FY26, Citi flagged concerns over muted buyer activity and a declining studded jewellery mix.
The 17% growth came despite a relatively low base of 8% in Q1FY25 and was led by early double-digit like-for-like (LFL) growth, primarily driven by higher ticket sizes. Management indicated that overall buyer growth was flat year-on-year, with gold prices up around 30% over the same period.
Citi noted that coin sales remained strong, plain gold grew in the mid-teens, and the studded jewellery segment posted early double-digit growth. However, the share of studded jewellery declined by an estimated 100–150 basis points year-on-year.
CaratLane, Titan’s online-first jewellery platform, reported an impressive 38% YoY growth. Among other standalone segments, Watches & Wearables grew 23%, EyeCare rose 12%, and Emerging Businesses delivered 36% growth. Consolidated consumer business revenue growth (ex-bullion) stood at 20% YoY.
Despite the robust numbers in non-jewellery categories, Citi remains cautious due to weak buyer metrics and potential margin impact from the lower studded share.
Disclaimer: The views expressed above are those of Citi and do not constitute investment advice. This article is for informational purposes only.
