Synopsis:
Nomura has given Titan Company a 27% upside potential with a ‘Buy’ rating, highlighting strong sales growth, stabilising margins, and expanding demand in jewellery and lifestyle sectors
Known for its strong presence in lifestyle and retail offerings, the company has caught investor attention with fresh insights from a leading brokerage. The report highlights robust sales growth, margin pressures stabilising, and long-term industry outperformance, with a new rating and potential upside likely to drive market interest in the stock.
Titan Company Limited’s stock, with a market capitalisation of Rs. 3,01,030 crores, rose to Rs. 3,402, hitting a high of up to 0.69 percent from its previous closing price of Rs. 3,378.50. However, the stock over the past year has given a negative return of 9.7 percent.
Nomura Target
Nomura has started coverage on Titan Company Ltd. with a ‘Buy’ rating and set a target price of Rs 4,275, which is about 27% higher than current levels. The firm highlighted that Titan is strongly positioned in the discretionary consumption space and continues to benefit from steady demand. With its market presence expanding and strong brand recall, Titan remains one of the most preferred names for investors in the jewellery and lifestyle segment.
The brokerage pointed out that Titan delivered an impressive 22% sales growth between FY23-25, though margins faced some pressure. However, Nomura believes these challenges are mostly behind and that concerns over profitability are overstated.
Titan is expected to grow at nearly 1.5 times the industry rate, supported by mid-teens growth trends. While the second quarter may look weak, Nomura sees this as an attractive entry point, expecting recovery in the latter half of the year, aided by festive and wedding season demand as well as new store openings.
Nomura also sees Titan benefiting from the rising spending power of affluent and elite customers, along with its deeper store expansion into Tier 2, 3, and 4 cities. The company is the fastest-growing player in the jewellery industry and is better placed than domestic peers when adjusted for risks. Importantly, the share of wedding jewellery in Titan’s revenues is expected to rise from 20% to 25% in the medium term, reinforcing its strong structural growth story despite being below the industry average.
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Q1 Financial Highlights
The company reported revenue of ₹16,523 crore in Q1FY26, a growth of 24.5% YoY from ₹13,266 crore in Q1FY25 and 10.8% QoQ from ₹14,916 crore in Q4FY25. Profit for the quarter stood at ₹1,091 crore, reflecting a 52.6% YoY increase from ₹715 crore and 25.3% sequential growth over ₹871 crore.
Over the last three years, the company delivered a robust performance with profit CAGR at 15%, sales CAGR at 28%, and ROE CAGR at 32%, highlighting its strong operational efficiency and consistent value creation for shareholders.
Written By Fazal Ul Vahab C H
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