Morgan Stanley has maintained an ‘Equal-weight’ rating on Titan Company Limited with a target price of ₹3,532/share, indicating a potential downside of 1.3% from the current market price (CMP) of ₹3,476.50.
Key Highlights:
- Jewellery Segment: Titan’s jewellery revenue grew by 26% year-on-year (YoY) in Q3FY25, supported by strong festive demand. Tanishq expanded its retail footprint, adding 11 new stores in India during the quarter, bringing the total to 34 in 9MFY25 and 56 in FY24.
- Watches Segment: Revenue growth stood at 15% YoY, driven by a 19% increase in analog watch sales. The domestic watches business grew 13% YoY.
- Eyecare Segment: Eyecare revenue showed a robust 18% YoY growth, significantly higher than Morgan Stanley’s estimate (MSe) of +12% and the previous quarter’s 7%.
- CaratLane Performance: Revenues for CaratLane rose by 25% YoY, slightly below the 28% growth recorded in Q2FY25 but surpassing Morgan Stanley’s estimate of +18%.
While Morgan Stanley acknowledges Titan’s strong performance across segments, the limited upside relative to its current valuation drives the cautious ‘Equal-weight’ stance.
Disclaimer: The above analysis is based on inputs provided and is for informational purposes only. It does not constitute financial advice. Readers are advised to consult their financial advisors before making any investment decisions.
