Wedding Season Could Provide a Significant Boost to Titan's Jewellery Business, With Expectations of Strong Growth and Robust Margins Over the Next Two Years
Titan Company is once again in the focus of investors. Brokerage firm Antique Stock Broking has expressed confidence in Titan, setting a target price of ₹4,195 for its shares. The current market price is around ₹3,689, indicating a potential rise of up to 14 percent in the share price.
Wedding Season Provides Support
The wedding season in India directly benefits several industries. The jewellery business is a prime example of this. Titan's core business is linked to jewellery, and the company's largest brand, 'Tanishq,' is recognized nationwide. According to the report, the first quarter of FY26 will have 29 auspicious wedding dates, whereas last year the figure was only 3 days. This is expected to lead to a sharp rise in Titan's jewellery sales.
Company's Strong Position Amid Rising Gold Prices
Gold prices have increased in recent times, putting pressure on the jewellery business. However, the company has already clarified that their jewellery business margin will remain between 11 and 11.5 percent. Experts believe that the impact of gold prices is temporary, and the company's strategy is b enough to balance this effect.
Customer Engagement Increased Through Brand, Design, and Store Experience
Titan is continuously working on its design strategy. New designs, festive collections, and stores that enhance customer experience are its strengths. The premium store experience and customer service have allowed the company to maintain trust in the market.
Jewellery Business to Maintain Momentum in the Coming Years
The brokerage report suggests that Titan's jewellery business is expected to grow at an average of 18 percent annually between FY25 and FY27. Although this pace is slightly slower compared to FY22 to FY25, it is considered stable and positive for the company.
South India is a Major Sales Hub
Titan is receiving the most business from South India. Particularly in Tamil Nadu, there is b trust in the Titan brand. South India's share in the Indian jewellery market is around 40 percent. Considering this, the company has made its stores in the South larger and more attractive.
Strong Growth Potential in Watches and Eyewear Business as well
Titan is not limited to jewellery. Its watch segment is also showing good performance. An estimated 17 percent annual growth is anticipated in the watch business from FY25 to FY27. Furthermore, the eyewear business is expected to grow by more than 20 percent.
Gradual Improvement in Margins
In FY25, Titan's jewellery margin decreased to 10.8 percent. However, the brokerage is confident that it can increase to 11.7 percent by FY27. Stability in gold prices and operational improvements by the company will contribute to this.
Titan's Future is Bright Due to Brand Value and Customer Trust
Titan's greatest strength is its brand value and the trust of its customers. For a long time, Titan has built an emotional connection with its customers. This is why customers are drawn to Titan during weddings, festivals, or special occasions.
Rekha Jhunjhunwala's Significant Stake Remains a Topic of Discussion
Rekha Jhunjhunwala's stake in Titan always attracts investors' attention. Currently, she holds 5.15 percent of the company's shares, approximately 45.8 lakh shares. This investment reflects her belief in Titan's business model.
Share Valuation and Trading Figures
According to the brokerage report, Titan's share is currently trading at a PE ratio of 66 times the estimated profit for FY26 and 53 times the estimated profit for FY27. Despite this, the brokerage has maintained a 'BUY' recommendation on the share, considering the company's b position and market hold.
