India’s gems, jewellery, and watches sector is poised for robust growth, driven by strong cultural demand and rising disposable incomes. The organised jewellery segment is forecast to achieve 17% revenue growth in FY26, with the market share of organised players expected to hit 47%. Industry value is projected to reach $168.6 billion by 2030, underscoring its dynamic expansion.
With a market capitalisation of Rs 3.24 lakh crore, the shares of Titan Company Ltd were trading at Rs 3,660 per share, increasing around 0.22 percent as compared to the previous closing price of Rs 3,652.45 apiece.
Titan Company Ltd’s stock commands a P/E of 97.4, significantly above the industry average of 31.4. This premium valuation reflects strong investor confidence, brand strength, and consistent performance.
However, such a high P/E also raises concerns about overvaluation and limited near-term upside. Investors must weigh growth potential against the risk of a correction in case of earnings disappointment.
Macquarie, one of the well-known brokerages globally, maintains its ‘outperform’ rating on this Tata Group stock with a target price of Rs 4,150 apiece, indicating a potential upside of 13 percent from Thursday’s price of Rs 3,660 per share.
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Macquarie remains optimistic about Titan’s outlook, citing a healthy demand recovery expected to drive jewellery sales growth in Q1 FY26. The brokerage believes jewellery EBIT margins likely bottomed out in FY25 and are set to improve. Confident in Titan’s execution, Macquarie expects the company to meet its FY26 EBIT margin guidance of 11–11.5%, signalling robust profitability ahead.
Moreover, Macquarie highlights potential challenges for lab-grown diamonds due to proposed GIA certification changes but notes a positive shift in demand for mined diamonds. The firm remains upbeat on Titan’s prospects, citing an improving product mix that could support margins and drive growth in its premium jewellery segment going forward.
Additionally, Titan holds 7 percent market share in India’s jewellery market, growing at 13% CAGR over 15 years, positioning it well for long-term expansion. Macquarie views this as a solid base, given the industry’s scale, brand trust, and rising formalisation.
Looking forward to the company’s financial performance, revenue increased by 19 percent from Rs 12,494 crore in Q4FY24 to Rs 14,916 crore in Q4FY25. Further, during the same time frame, net profit increased by 13 percent from Rs 771 crore to Rs 871 crore.
Titan’s FY25 jewellery growth was strong, with 23% NSV growth driven by early festive stocking. For FY26, management targets high double-digit growth, broadly between 15–20%. Key growth drivers include a robust wedding season, ongoing infrastructure push, improved liquidity, and favourable macroeconomic conditions supporting consumer sentiment.
Titan plans to open 40–50 new Tanishq stores in FY26, signaling steady retail expansion. Alongside, 50–60 existing outlets will undergo renovation, relocation, or expansion under a “transformation program,” aimed at enhancing customer experience and optimizing store performance across key locations.
Written by Abhishek Singh
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