Titan stock extends gains as brokerages bullish on jewellery growth roadmap; CLSA, HSBC see over 23%... - Moneycontrol.com
Brokerages remained broadly constructive after Titan outlined plans to double jewellery business revenue by FY30 from FY26, and stated a target of around 20 percent
Brokerages remained broadly constructive after Titan outlined plans to double jewellery business revenue by FY30 from FY26, and stated a target of around 20 percent compound annual growth in revenue through FY30. Titan aims to double jewellery revenue by FY30 from FY26 levels Brokerages maintain bullish ratings, target prices up to Rs 5,250 Titan plans to expand jewellery stores to 1,400 from 800 Did our AI summary help? TI01 TI01 NSE/BSE Select NSE LIVE BSE LIVE Day High Day Low Volume (NSE) More × Shares of Titan Company Ltd traded higher on Friday after multiple brokerages reiterated bullish view on the stock following the company's ambitious growth roadmap for its jewellery business. Titan stock rose 0.3 percent to Rs 4,244.5 in early trade after gaining 3.7 percent in the previous session.
The stock has risen 21 percent over the past year, significantly outperforming the Nifty 50, which has declined 5.4 percent during the same period. Brokerages remained broadly constructive after Titan outlined plans to double jewellery business revenue by FY30 from FY26, and stated a target of around 20 percent compound annual growth in revenue through FY30. The company also aims to increase its domestic jewellery market share to 11 percent from 8.5 percent currently, and expand its jewellery store network to 1,400 outlets from around 800 at present. CLSA maintained its Outperform rating on Titan stock with a target price of Rs 5,249 per share, implying an upside of nearly 24 percent. The brokerage said Titan continues to target a 20 percent CAGR in jewellery revenue and a 1.9-times increase in jewellery EBIT by FY30.
CLSA highlighted resilient consumer sentiment and said Titan's portfolio-led strategy across categories is supporting premiumisation and strengthening brand equity. It believes the company is well placed to benefit from rising affluence. HSBC also retained its Buy rating with a target price of Rs 5,250 per share. The brokerage said Titan's FY30 ambitions imply a 19 percent CAGR in consolidated revenue and EBIT. It expects the company's jewellery brands -- Tanishq, Mia and Zoya -- to deliver revenue and EBIT CAGR of 19 percent and 16 percent, respectively. While HSBC described the jewellery growth target as slightly aggressive after a strong three-year run, it raised its FY27 and FY28 earnings estimates by 1-2 percent and said the investment case remains compelling despite near-term regulatory uncertainty. Jefferies maintained a Hold rating on Titan stock with a target price of Rs 4,800 per share.
The brokerage said Titan's FY30 targets imply around 20 percent CAGR in both revenue and EBIT over FY26-30. It highlighted cross-selling opportunities from the company's customer base of about 50 million, improving digital and customer relationship management platforms, and growth potential from international operations. However, Jefferies said regulatory overhang remains a key factor tempering its outlook despite Titan's strong execution track record. Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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