Jefferies has maintained its hold rating on Titan, reducing the target price to ₹3,400, which suggests a 5% upside from the current market price of ₹3,235. Titan’s Q2 results were impacted by custom duties, which weighed on reported margins. The adjusted margins also came in weak due to a less favorable product mix, with lower sales of studded jewelry.
While Q2 met Jefferies’ muted expectations, it fell short of market consensus. Management’s commentary on demand was reasonably positive, but the cut in jewelry margin guidance—largely due to weak demand for solitaires—may be seen as a negative. Jefferies has accordingly lowered its EPS estimates for Titan by 3-7%.
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.
