Morgan Stanley has maintained its Overweight rating on Titan Company with a target price of ₹3,876, suggesting modest upside from the current market price of ₹3,670.00. However, the brokerage flagged a significant miss in jewellery growth during Q1FY26, driven by softer consumer sentiment and gold price volatility.
According to Morgan Stanley, revenue from the Tanishq, Mia, and Zoya businesses (excluding bullion) rose 17% year-on-year, falling well short of its 28% YoY growth estimate. The weakness was attributed to muted consumer purchases, particularly between May and mid-June, amid sharp fluctuations in gold prices.
The brokerage also highlighted that buyer growth was flat during the quarter, and the share of studded jewellery declined year-on-year—adding to concerns over mix deterioration. While Morgan Stanley continues to back Titan’s long-term prospects, it acknowledged that near-term pressures on discretionary spending and changing consumer behaviour could impact premium jewellery demand.
Despite these short-term headwinds, the brokerage retained its positive stance, citing Titan’s strong brand portfolio, diversified product range, and robust execution track record.
Disclaimer: The views expressed above are those of Morgan Stanley and do not constitute investment advice. This article is for informational purposes only.
