Shares of Titan Company Ltd., a prominent Tata group entity and the largest stock holding by value for investor Rekha Jhunjhunwala, soared by 4 percent on Monday to achieve a fresh record high. This surge came after several brokerages revised their price targets upwards, following the company's robust June quarter performance.
Brokerages Adjust Titan Stock Targets
Emkay Global was among the firms to update its outlook, raising its target for Titan Company by 10 percent to Rs 5,600 from Rs 5,100. The brokerage highlighted a 33 percent adjusted EBIT growth in Titan's standalone jewellery business, driven by a 38 percent top-line growth, despite a slight margin moderation to 11 percent due to gold price volatility. Emkay noted that despite significant outperformance against the Nifty, Titan trades at a valuation discount to peers like DMart and Trent, making a strong case for continued re-rating given its track record and growth prospects.
Elara also increased its target on Titan to Rs 5,300 from Rs 5,100, though it adjusted its rating to 'Accumulate'. This revised target incorporated improved margins and gains from custom duty changes. Elara anticipates a 25 percent growth in the second quarter, aided by a favorable calendar shift of the Shradh period.
Jhunjhunwala's Significant Stake
On Monday, Titan shares climbed 3.6 percent to touch Rs 5,121.30 on the BSE. As of the end of the June quarter, Rekha Jhunjhunwala held a 5.31 percent stake in the company, a holding valued at approximately Rs 23,960 crore, underscoring the significance of Titan in her portfolio.
Analyst Outlook and Future Factors
MOFSL reiterated its 'BUY' rating on Titan, setting a target of Rs 6,000. The firm remains optimistic about growth in the jewellery sector, particularly among leading players, and views Titan as competitively well-positioned, supported by initiatives like its exchange program. MOFSL projects an 18 percent CAGR in sales, 22 percent in EBITDA, and 25 percent in adjusted PAT over FY26-28E.
ICICI Securities updated its target to Rs 5,500 from Rs 5,250, emphasizing key factors to monitor, including buyer recovery, the sustained growth of studded jewellery following LGD price stabilization, and margin support from lower-karat products and sourcing initiatives. The firm also noted that store additions, international expansion, and TEAL (Titan Eyeplus) remain crucial to the medium-term narrative.
Conversely, HDFC Institutional Equities maintained a 'Reduce' rating with a DCF-based target of Rs 4,350 per share. They cited tough comparable figures and intensified competition as potential headwinds for jewellery demand in the second half of FY27.