Titan Company shares slip even as Bernstein initiates coverage with outperform call; 15% upside seen

Titan Company shares have risen 12 percent since the beginning of the year.

Shares of Titan Company slipped almost a percent to Rs 3,627 in morning deals on Tuesday, August 26, even as Bernstein initiated coverage with an outperform rating on the stock, citing positive levers for growth. The drop comes amid a weak market mood after Donald Trump signalled an additional 25 percent tariff on India.

The international brokerage has assigned a price target of Rs 4,200 per share. This implies an upside potential of 15 percent from the last closing price of Rs 3,651. The brokerage pointed to Titan’s strong legacy of delivering 23 percent EPS CAGR over the past two decades, while also highlighting that the stock currently trades at a five-year low valuation.

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Despite challenges from higher gold prices, intensifying competition, and shifts in natural versus lab-grown diamond dynamics, Bernstein projects an 18 percent revenue CAGR and 25 percent EBIT CAGR between FY25 and FY28.

The jeweller and watchmaker reported a 34 percent increase in standalone net profit at Rs 1,030 crore for the quarter ended June 30, 2025. The firm reported a standalone net profit of Rs 770 crore in the year-ago period.

The firm's bottom line exceeded estimates as a Moneycontrol poll of five brokerages pegged it at Rs 893 crore. The firm's standalone revenue rose 21 percent to Rs 14,564 crore in Q1FY26 as against Rs 12,053 crore a year ago.

The Tata group company said the watches business had an 'exceptional' quarter, recording a growth of 24 percent over Q1FY25, achieving a total income of Rs 1,273 crore. EBIT came in at Rs 287 crore, clocking a 22.6 percent margin for Q1FY26.

At about 9:45 am, shares of the company were trading at Rs 3,636, lower by 0.4 percent from the last close on the NSE. Titan Company shares have risen 12 percent since the beginning of the year.

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