Titan shares edge higher as analysts largely bullish, see up to 24% upside

Shares of Titan Company Ltd. gained on Friday, June 5, as as brokerages are largely positive on the stock after its analyst meet a day prior.

While CLSA and HSBC have "outperform" and "buy" ratings on Titan, Jefferies has a "hold" recommendation and see up to 24% upside from its previous close.

CLSA

The brokerage has an "outeperform" rating on the stock with a price target of ₹5,248 apiece.

it said the company reaffirms a 20% compound annual growth rate (CAGR), targeting 2 times its FY26 revenue and 1.9 times its EBIT for the jewellery segment by FY30.

Titan's management noted its resilient consumer sentiment. The company's portfolio-led approach across categories is enabling premiumization and strengthening brand equity, the brokerage said.

CLSA said it maintains its rating, given the company's strong positioning to benefit from its rising affluence and premium trends.

HSBC

The brokerage has a "buy" rating and a price target of ₹5,250 per share.

It said Titan's FY30 ambition impiies 19% CAGR each in consolidated revenues, EBIT and Tanishq, Mia, Zoya (TMZ) at 19% and 16%, respectively.

It said Titan's jewellery business growth, following a strong three years, looks slightly aggressive. But it raised its expectations to 17% CAGR.

Its estimated earnings per share for FY27 and 28 is up 1% and 2% each. Beyond the short-term regulatory uncertainty the investment case is compelling, HSBC said.

Jefferies

The brokerage has a "hold" rating on Titan with a price target of ₹4,800 apiece.

It said Titan is targeting 20% revenue/EBIT CAGR over FY26-30 led by same store sales (SSS), network expansion, formalization, share gain, premiumization, etc, notwithstanding ST concerns on macro, inflation and high gold prices. It said cross-sell is a lever with a 50 million customer base and an improving digital/CRM platform.

Jefferies said it finds Titan's management and execution best-in-class, but the regulatory overhang tempers its outlook.

Of the 37 analysts who have coverage on the stock, 30 have a "buy" rating, five have a "hold" raitng and two have a "sell" rating,

Titan shares opened nearly 1% higher on Friday but later pared their gains and were trading 0.3% up at ₹4,246.1 apiece at 9.35 am. The stock has gained 5.2% this year, so far.

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