Brokerages have provided varied views on Titan Company Limited following its strong Q3FY25 performance, with a robust 26% year-on-year (YoY) growth in jewellery revenues driven by festive demand and growth across other key segments. Here’s a summary of their ratings, target prices, and key highlights:
| Brokerage | Rating | Target Price (₹) | Expected % Upside/Downside |
|---|---|---|---|
| Goldman Sachs (GS) | Buy | 3,650 | +5.0% |
| Citi | Neutral | 3,600 | +3.5% |
| Morgan Stanley (MS) | Equal Weight | 3,532 | +1.6% |
| Macquarie | Outperform | 4,150 | +19.4% |
Key Highlights from Brokerages:
Goldman Sachs (Buy, TP ₹3,650)
- Jewellery Performance: Jewellery business delivered 26% YoY growth, with studded jewellery growing ~21% YoY, alleviating concerns over the studded category.
- CaratLane: Studded sales growth remains strong.
- Other Segments: Eyewear sales grew 17% YoY, and the Watches segment also maintained strong growth.
Citi (Neutral, TP ₹3,600)
- Festive Boost: Jewellery revenue grew 26% YoY in Q3FY25, led by festive demand, high single-digit buyer growth, and double-digit ticket size growth (26% YoY gold price growth).
- Segmental Performance: CaratLane grew 25% YoY; Watches & Wearables 15%; Eyecare 18%; Emerging Businesses only 5%.
- Store Expansion: Added 11 Tanishq stores in Q3FY25, highlighting strong retail expansion.
Morgan Stanley (Equal Weight, TP ₹3,532)
- Jewellery Growth: 26% YoY growth in jewellery revenue, supported by festive cheer.
- Watches and Eyecare: Watches grew 15% YoY, led by 19% growth in analog watches, while Eyecare grew 18% YoY, above MS estimates.
- CaratLane: Recorded a 25% YoY revenue growth, slightly lower than 28% in Q2FY25.
Macquarie (Outperform, TP ₹4,150)
- Strong Demand: Demand strength across jewellery and eyecare segments noted in the pre-Q3FY25 update.
- Studded Jewellery: Growth of 21% YoY alleviates concerns over lab-grown diamond competition.
- Earnings Revision: FY25/26/27E EPS estimates raised by 4% to factor in the strong update.
While all brokerages acknowledge Titan’s strong Q3FY25 performance driven by jewellery growth and festive demand, they have differing views on its valuation and future potential.
- Macquarie is the most optimistic with a 19.4% upside, citing demand strength and EPS upgrades.
- Goldman Sachs and Citi appreciate the robust segmental growth but expect limited upside, maintaining a cautious stance.
- Morgan Stanley holds a neutral outlook due to valuation concerns, despite strong operational performance.
Disclaimer: This 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
