Titan shares: Jhunjhunwala's top bet jumps 4%; buy, hold or sell? Targets

Rekha Jhunjhunwala's top bet in terms of value, Titan Company jumped 4 per cent in Friday's trade as a handful of brokerages stayed bullish on the stock post its September quarter results. The stock rose 3.52 per cent to hit a high of Rs 5,001.90 apiece.

Adjusting for custom duty and mark-to-market gains, margins improved to 11.7 per cent, strongest in a while, driven by higher stud mix and reduced coin sales. Caratlane revenue grew 31 per cent YoY with margins moderating to 6.5 per cent due to higher A&P spends. Watches logged robust growth, recording its highest-ever EBIT margin of 22.1 per cent, Nuvama said. It maintained 'Hold' on Titan but increased target on the stock to Rs 5,479 from Rs 5,030 earlier.

MOFSL said it remained constructive on growth in the jewellery industry, particularly among top players. It believes Titan will remain well-positioned competitively, supported by initiatives such as its exchange program.

"Apart from industry formalization, stability in gold prices can further improve margin visibility for Titan. We model a CAGR of 15 per cent in sales, 23 per cen in Ebitda, and 24 per cent in adjusted PAT over FY26-28E. We reiterate our BUY rating on the stock with a target of Rs 5,700, based on 55x Sep'28E EPS. TTAN remain one of our top picks," MOFSL said.

ICICI Securities said Titan's investment buying is moderating while core jewellery has recovered gradually, which points to a healthier mix.

"Studded segment, up 32 per cent YoY, is an industry-wide theme driven by natural diamonds and younger buyers, and Titan is well placed to gain from it. Brand building, network expansion and a strong brand portfolio should help the company manage rising competition, and 11 per cent jewellery margin guidance is intact. Reiterate ADD," it said as it suggested a revised target of Rs 5,100 from Rs 5,000 earlier.

Jhunjhunwala owned about 5.3 per cent stake in Titan company at the end of September quarter, which was valued roughly Rs 23,400 crore on Friday.

Emkay Global said Titan has reiterated its Analyst Day guidance of more than doubling topline and EBIT over FY26-30. In its view, Titan's strong track record and healthy outlook make a strong case for continued re-rating.

"Our estimates remain largely unchanged, as the benefit of slightly better margins is offset by an increase in debt. Reported Ebitda was 25-30 per cent higher than consensus/our estimate, on account of a Rs 540 crore benefit from the customs duty increase and a Rs 670 crore gain on the reduction of liability (option value), related to the remnant Damas stake acquisition," Emkay said.