Buy Titan Company; target of Rs 4500: Motilal Oswal

Motilal Oswal's research report on Titan Company

Titan Company (TTAN) posted consolidated sales growth of 29% YoY in 2QFY26. Standalone jewelry sales (excl. bullion) rose 19% YoY, driven by the early onset of the festive season, gold exchange campaign, and consumer offers. Studded jewelry grew 16% YoY, and the mix remained flat YoY at 34%. Net jewelry store additions stood at 35 in 2Q, bringing the total count to 1,145. Standalone jewelry LFL growth was 14%, while CaratLane posted a robust 29% YoY growth. Moreover, TTAN witnessed robust festive season sales in October, consistent with the positive feedback shared in our channel checks update (link). Gold prices moderated ~6% during the 10 days after Diwali, supporting incremental footfalls.

Outlook

We model a CAGR of 18%/20%/23% in revenue/EBITDA/PAT during FY25-28E. TTAN’s valuation is rich, but it offers a long runway for growth with a superior execution track record. Reiterate BUY with a TP of INR4,500 (60x Sep’27 P/E).