Buy Titan Company; target of Rs 2992: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Titan Company has recommended buy rating on the stock with a target price of Rs 2992 in its research report dated May 03, 2023.

Broker Research

May 05, 2023 / 14:49 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Titan Company

We remain constructive on TTAN post 4Q results given strong underlying demand trends in Jewellery and scalability in wearables, Eyewear and Taneira. 3Q results were a miss on EBIDTA due to lower margins in watches, eyewear and higher losses in emerging businesses. TTAN is focusing on volume led growth in jewellery given rising competition while superior mix and scale will help sustain margins. We expect TTAN to capitalize on long term growth opportunity led by 1) jewellery segment gains due to network expansion, regional thrust and higher growth in sub brands like Mia, Zoya and Caratlane 2) Omni-channel strategy across jewellery, watches and eyewear 3) new growth drivers like Caratlane, Titan Eye+, Taneira and 4) strong growth in wearables with smartwatch volumes exceeding 1mn in FY23.

Outlook

We believe Eyewear and CaratLane have reached critical mass with FY23 EBIT of Rs980mn and Rs1.66bn (96% and 177% growth) and will be a key growth driver in coming years. TTAN is gradually emerging as a lifestyle play which will help sustain premium valuations. TTAN currently trades at 49.3x FY25E EPS with 20% EPS CAGR over FY23-25. Retain Buy.

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