Titan Q1 Review: Brokerages Remain Bullish, Citi And Jefferies Hike Target Price

Brokerages remain bullish in their views on Titan Co. post first quarter of fiscal 2025-26. Citi and Jefferies have hiked target price for the stock, while Morgan Stanley and Macquarie kept target price unchanged.

Titan Co.'s consolidated net profit rose 52.6% in the first quarter of financial year 2026, beating analysts' estimates. The luxury products manufacturer's bottom line increased to Rs 1,091 crore in the April-June period, according to an exchange filing on Thursday.

Citi maintains a 'buy' rating for Titan with a target price hike to Rs 3,900 from Rs 3,800, as growth and profitability are in-line.

The brokerage remains cautious on medium-term margins or profitability amid elevated competitive intensity, higher gold prices and adverse product mix. "Aggressive store expansion by existing and new players implies need to invest in branding, marketing and higher discounting," it added.

Jefferies maintains a 'hold' rating for Titan with a target price hike to Rs 3,800 from Rs 3,600. "The company saw a strong growth across brands under jewellery as well as watches, along with margin expansion," it added.

According to the brokerage, a part of the margin gain was bolstered by one-offs but adjusted Ebitda also came ahead of forecasts. "Most of the one-offs will also reverse in the subsequent quarters," it added.

Jefferies highlighted that, firm gold prices remain a challenge in jewellery, which impacted buyer growth.

Meanwhile, Morgan Stanley has maintained 'overweight' rating with a target price at Rs 3,876. The brokerage noted that the company is on track to pursue market share strategy. "Growth and market share remain the top priority for the company, it will not constrain investments for margins," it added.

The brokerage shared, buyer growth in studded was higher than in gold jewellery, indicating new buyer interest in studded. "Titan's entry in LGD would be subject to customer interest, ability to have strong IP and unit economics," it added.

Morgan Stanley further expects, that watches margin will reverse in the next two quarters. "Q2 has a high base with gold custom duty reduction, and deferment of sales, but the quarter has started well," it added.

Macquarie has also maintained an 'outperform' rating with a target price at Rs 4,150. The brokerage highlighted that the company's Jewellery margin is in line.

Macquarie noted that, a good start to jewellery sales is seen in Q2, but high base is a concern. The brokerage sees potential moderation in jewellery growth in Q2 given high base. "Slower same store sales growth in Q1 versus peers were concerning," it added.