Goldman Sachs has reiterated its buy rating on Titan, reducing the target price from ₹3,750 to ₹3,650, implying a 13% upside from the current market price of ₹3,235. Despite a cut in margin guidance for Q2, Goldman Sachs remains optimistic about Titan’s growth outlook, which it describes as robust.
The company posted strong jewelry growth in Q2, and management reported positive momentum in the ongoing festive season in Q3. While the studded jewelry mix declined, the overall growth in the studded category remained healthy. Management also clarified that lab-grown diamonds have not had any material impact on their business.
However, jewelry margins fell short of expectations, prompting management to lower its margin guidance for FY25 by approximately 100 basis points. Despite this, Goldman Sachs believes Titan’s growth potential remains intact.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making any investment decisions.
