Reduce Titan Company; target of Rs 3350: Emkay Global Financial

Emkay Global Financial recommended reduce rating on Titan Company with a target price of Rs 3350 in its research report dated July 07, 2025.

Broker Research

July 08, 2025 / 11:31 IST

Reduce

26 Aug, 2025 12:21

Volume

Todays L/H

Emkay Global Financial' research report on Titan Company

TTAN saw growth moderation in Q1 with 17% growth in the jewelry business vs recent trends of ~25% growth. Also, LTL growth for TTAN in the early double digits is weaker vs 18-19% for peers. In our view, Street’s expectation of a high-teen jewelry growth for FY26 at stable margin is at risk, as the 17% growth in Q1 comes on a weak base (9% growth); the rest of FY26 has a strong base of ~25% growth, enabled by a 900bps duty-cut last year. Further, the revenue mix is seemingly weak currently, with higher growth in the low-margin coin sales and lower growth in the high-margin studded/plain gold segments. TTAN’s 1YF valuations at ~65x are demanding and leave limited room for disappointment.

Outlook

Given the risk to estimates, the increasing competition, mushrooming LGD players and deteriorating RoIC profile, we maintain REDUCE on TTAN with TP of Rs3,350 (50x Jun-27E EPS).

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