Synopsis:
Tata Group Stocks in Focus After Strong Q2 Growth and Buy Ratings from Four Brokerages.
A Tata group Company with leadership positions in the Watches, Jewellery and Eyewear categories, is in the spotlight after announcing growth in different segments in Q2 and receiving buy ratings from different brokerages.
With the market capitalization of Rs. 3,16,655.57 crore, the shares of Titan Company Ltd is trading at Rs. 3,566.80, up by 4.35 percent from its previous day’s close price of Rs. 3,418.20 per equity share.
What’s the News?
The company reported strong growth across its segments, with domestic business rising 18 percent and international business surging 86 percent. The consumer business grew 20 percent, while jewellery and watch segments increased 19 percent and 12 percent, respectively.
The EyeCare segment recorded 9 percent growth, and the emerging business achieved 37 percent growth. During the quarter, the company also expanded its retail footprint by adding 54 new domestic stores and 1 international store, bringing its total retail network to 3,377 stores.
Analyst Outlook
Morgan Stanley
Morgan Stanley has maintained its ‘overweight ‘ rating on the stock, with the target price of Rs. 3,953, with an upside of 10.82 percent from CMP of Rs. 3,566.80. Morgan Stanley maintains overweight on Titan after a strong Q2 beat, driven by jewellery performance.
While a high base from the customs duty cut limited growth, early festive season demand and investments in consumer promotions supported expansion. Studded jewellery posted mid-teens revenue growth, and gold coins continued their steady growth trajectory.
JP Morgan
JP Morgan has maintained its ‘Neutral’ rating on the stock, with the target price of Rs. 3,500, with a downside of 1.87 percent from CMP of Rs. 3,566.80. JP Morgan maintains a neutral stance on Titan, noting that festive demand and attractive offers are driving healthy jewellery growth, with gold prices boosting revenue.
With revenue exceeding expectations, a positive share price reaction is likely, potentially reversing some recent underperformance. The next key catalyst will be the earnings release, where margins and management’s growth guidance will be crucial.
Macquarie
Macquarie has maintained its ‘outperform’ rating on the stock, with the target price of Rs. 4,150, with an upside of 16.35 percent from CMP of Rs. 3,566.80. Macquarie maintains outperform on Titan following a better-than-expected pre-Q2 update, with jewellery sales surprising positively. They expect 14 percent standalone EBITDA growth for Q2.
CLSA
CLSA has maintained its ‘outperform’ rating on the stock, with the target price of Rs. 4,220, with an upside of 18.31 percent from CMP of Rs. 3,566.80. CLSA maintains outperform on Titan, highlighting a strong jewellery business. Domestic jewellery growth of 19 percent exceeded estimates, and the firm remains positive over the medium term, expecting elevated gold prices to enhance operating leverage.
Also Read: Canara Bank and 2 other stocks in which mutual funds increased their stake in Q2
About the Company & Others
Titan Company Limited, founded in 1984 as a joint venture between the Tata Group and TIDCO, is a prominent lifestyle brand offering a wide range of products including jewellery, watches and wearables, eyewear, fragrances, women’s bags, and traditional Indian attire. Renowned for its focus on quality, innovation, and customer satisfaction, Titan blends style with sophistication to cater to evolving consumer preferences.
A return on equity (ROE) of about 31.8 percent, a return on capital employed (ROCE) of about 19.1 percent and debt to equity ratio at 1.79 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 85.1x higher as compared to its industry P/E 29.4x.
Titan Company Limited reported Q1FY26 revenue of Rs. 16,523 cr, up 24.6 percent YoY from Rs. 13,266 cr in Q1FY25 and 10.8 percent QoQ from Rs. 14,916 cr in Q4FY25. Profit rose to Rs. 1,091 cr, a 52.6 percent YoY increase from Rs. 715 cr and 25.3 percent QoQ growth from Rs. 871 cr, reflecting strong operational performance across its jewellery, watches, and lifestyle segments.
Written by Akshay Sanghavi
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