UBS has upgraded Titan Company to a buy rating from neutral and raised its target price to ₹4,700 per share from ₹3,600, citing the jewellery major’s strong brand positioning, consumer trust, and scale advantages that position it for a significant earnings rebound over the next two fiscal years.
In its APAC-focused note titled “Time to re-jewel your portfolio,” UBS said Titan remains an impressive player in India’s jewellery landscape, even as concerns about rising competition and the potential impact of lab-grown diamonds (LGDs) have weighed on investor sentiment. However, the brokerage believes these risks are manageable. Citing insights from the UBS Evidence Lab survey, it said the threat from LGDs is limited, while Titan’s value proposition continues to remain highly competitive.
After two years of stagnation, UBS expects Titan’s shares to stage a strong rebound. The brokerage forecasts a 46% earnings growth in FY26 and 21% in FY27, following a muted FY25, supported by jewellery margin recovery and resilient demand despite elevated gold prices. UBS added that Titan’s valuation appears attractive — currently trading at about a 6% discount to its five-year average price-to-earnings multiple.
The brokerage has revised its valuation framework, now pegging Titan at 60.9x next-twelve-months PE, implying around 25% potential upside. UBS said the company remains a structural winner in the consumer discretionary space, though risks include further gold price inflation and heightened price competition.
