Shares of Titan rose on Friday, May 15 after Morgan Stanley mainatined an 'Overweight' coverage on the stock, citing that the import duty hike will not impact the operations of the jewellery maker. The brokerage, in its recent note set a target of Rs 5,212 on Titan stock, marking an upside of 24.6% from its current price.
Titan shares advanced 1.42% intraday to Rs 4,194 apiece. The scrip was trading 1.3% higher by 11:01 a.m. The benchmark NSE Nifty 50 was up 0.58%.
This week, the government tightened import duty norms of precious by imposing a limit of 100 kg on gold imports under the Advance Authorisation scheme and hiking import duty rates.
On 100 kg gold import limit rule will affect Titan's operations as the policy is aimed at curbing players that were not mapping imports and exports exactly, and benefiting from loopholes and lower monitoring. In terms of importy duty hike, the brokerage noted that Titan is much better placed than in the past, with a large gold exchange program that accounts for around 50% of revenues currently.
In past periods of restriction, the company has also sourced gold from temples, copper-smelting units, etc. Per management during the 4QF26 earnings call, the company is covered for its required gold supplies for 1QF21. Meanwhile, Titan management says gold supplies for 1QFY27 already secured.
Titan shares fell following the import duty hike announcement, however Morgan Stanley the argues that over 50% of the gold the company uses comes directly from customer purchases. This is essentially old jewellery being exchanged at the counter, thus making it insulated from the cost impact that a customs duty hike would impose on a convention importer.
The remainder is sourced through a mix of metal gold loans and market purchases, thus giving Titan some flexibility in managing input costs.
The brokerage believes any demand softness, if it happens, will be short-lived. While consumers may pause on discretionary jewellery purchases as prices adjust, the structural appetite for gold in India has historically proven to be resilient to duty-driven price shocks.
ALSO READ: Five Stocks To Buy: NMDC, Tata Steel, Varun Beverages And More | May 15, 2026
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
