Titan shares up 20% in a year; still a ‘Buy’? - Check share price target

Titan Company Ltd shares settled higher in the last session on Friday, gaining 0.78 to close at Rs 4260. The counter has gained about 20% in a year and over 13% in the last six months. 

Titan share price target

Amid this, in its latest company update, the brokerage firm JM Financial has maintained its ‘Buy’ rating on the consumer discretionary major with a 12-month target price of Rs 4,900 per share, which implies a potential upside of 15% from the current levels.

The brokerage noted that the management's blueprint addresses immediate macro hurdles, including elevated gold prices and evolving regulatory landscapes “as management outlined its plan to build growth engines beyond jewellery, by investing in eyecare, watches and emerging businesses through premiumisation, omnichannel expansion and category development.”

At the consolidated level, Titan is aiming for a 2x growth multiplier in both revenue and EBIT by FY30, it said. “We broadly concur with management’s long-term jewellery aspirations given its strong execution and market share gains. We remain more conservative on eyecare and watches segments until there is clearer evidence of sustained improvement,” the brokerage said.

The brokerage's structural valuation remains anchored to the stock's positioning, valuing the company at 55x FY28E pre-IndAS EPS 

“Titan's jewellery strategy is centred on four pillars: expanding Mia through franchise-led growth; continuously strengthening Tanishq's wedding leadership; driving marketshare gains through regional collections; and mitigating gold-price volatility through gold exchange and Gold on Loan (GOL) sourcing,” JM Financial said.