Prabhudas Lilladher's research report on Titan Company
TTAN reported a robust 4Q led by 1) value growth leg by 30-40% higher gold prices 2) 330bps margin gain in watches and 3) 20bps higher margins in jewellery enabled by operating leverage and hedging gains. 1H26 outlook remains positive given low vase due to elections and no marriage days. Higher gold prices are impacting demand however consumers are shifting to lighter jewellery and value growth remains strong. Gold on lease charges are stabilizing and the gap in only 70bps now, TTAN will gain from higher gold prices and margin requirements given strong balance sheet than competitors.
Outlook
We raise FY26/27 EPS by 0.4/4.2% respectively and 22.7% PAT CAGR over FY25-27. We assign SOTP based target price of Rs3752 (Rs3695 earlier). Retan BUY.
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