Titan Company Stock Surges on Analyst 'Buy' Call, Rs 4600 Target

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AuthorRiya Kapoor|Published at:
Titan Company Stock Surges on Analyst 'Buy' Call, Rs 4600 Target
Overview

Prabhudas Lilladher reiterates 'Buy' on Titan Company with an enhanced target price of Rs 4600. The firm cites expansion into lab-grown diamonds via 'beYon' and strong performance across jewellery, watches, and eyewear divisions. Analysts project robust sales and profit growth for FY26, driven by increased gold prices and sustained consumer demand.

Analyst Upgrade Fuels Titan Company Rally

Prabhudas Lilladher has initiated a 'Buy' recommendation for Titan Company, setting an ambitious target price of ₹4600. This move signals strong confidence in the diversified retail giant's growth trajectory, particularly its strategic expansion into the burgeoning lab-grown diamond (LGD) market.

Strategic Leap with 'beYon'

The brokerage firm believes Titan's new LGD-focused brand, 'beYon', is poised to significantly broaden the company's market reach. While acknowledging potential minor cannibalization from existing brands like Caratlane and Mia, the analysis emphasizes that the expanded market size and acquisition of new customer segments will outweigh these shifts. This strategy is viewed as a measured approach to capture incremental demand in the daily-wear studded jewelry segment.

Core Business Strength

Beyond new ventures, Titan's established businesses continue to demonstrate resilience and growth. The consumer division reported a 40% surge in the third quarter, largely propelled by a 41% increase in domestic jewelry sales. The watch and eyewear segments also posted healthy double-digit and 16% growth, respectively. Analysts expect this momentum to persist, supported by firm gold prices and consistent consumer appetite.

Financial Outlook Brightens

Prabhudas Lilladher has revised its earnings per share (EPS) estimates upward by 6.8%, 4.5%, and 4.6% for FY26, FY27, and FY28, respectively. This optimism is reflected in the increased target price from ₹4397 to ₹4600. The firm forecasts a compound annual growth rate (CAGR) of 27.4% for EPS over FY25-28, underscoring a positive outlook for the company's financial performance.

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