Morgan Stanley has maintained an equal-weight rating on Titan, setting a target price of ₹3,532, which implies a 9% upside from the current market price of ₹3,235. Titan’s Q2 results showed strong top-line growth, driven by robust buyer growth, partly attributed to a duty cut. However, the company reported a significant negative surprise on margins, which fell short of estimates.
Management has lowered its FY25 EBIT margin guidance for the jewelry segment to 11-11.5%, reflecting margin pressures. Despite this, demand is expected to remain strong in the second half of the year, potentially supporting future growth.
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