Titan Q3 Results Review: Rich Valuations, But Offers Long Runway For Growth, Says Motilal Oswal— Retains 'Buy'

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Motilal Oswal Report

Titan Company Ltd., with its superior competitive positioning (in sourcing, studded ratio, youth-centric focus, and reinvestment strategy), continues to outperform other branded players. The brand recall and business moat are not easily replicable; therefore, Tanishq’s competitive edge will remain strong in the category. The store count reached 3,240 as of Dec-24, and the expansion story remains intact.

Ebitda margin has been contracting in FY25 owing to a lower studded mix. It will be critical to monitor the margin outlook amid intensifying competition. The non-jewelry business is also scaling up well and will contribute to growth in the medium term.

We model a CAGR of 17%/19%/22% in revenue/Ebitda/PAT during FY25-27E. Titan’s valuation is rich, but it offers a long runway for growth with a superior execution track record. Reiterate Buy with a target price of Rs 4,000.

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