Titan‘s share price made a comeback on Friday morning after falling over 2.5% on Thursday.

What Happened: Shares of Tata Group company are upbeat today as CLSA maintained its “buy” rating on the stock. The global brokerage firm has a target price of ₹4,494 on the stock. The target indicates an over 20% upside from the last closing price of ₹3,734.

The brokerage said that Tanishq’s strategy of making charges tied to product prices as a percentage showcases its pricing power, particularly in the premium segment. Unlike many other major competitors, where making charges tend to decrease as product prices increase, Tanishq’s ability to charge a consistent premium highlights its focus on design, consumer trust, and customer service.

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The analysts added that this unique approach contributes to higher operating margins and better returns for Tanishq compared to its counterparts. The brand’s emphasis on quality and customer satisfaction allows it to maintain a strong position in the market.

Earlier in the month, the jewellery giant reported its quarterly update. Titan reported a 22% YoY growth in revenue for the quarter ending December 30, 2023. The impressive performance in the jewellery division is attributed to a 21% surge in domestic sales, fueled by increased buyer numbers and a moderate uptick in average selling prices. Tanishq also expanded its global presence by adding two stores in the USA (Houston and Dallas) and one in Singapore, bringing its international footprint to a total of 14 stores.

Following this positive update, HSBC maintained its “buy” rating for Titan’s stock and raised the price target from ₹3,900 to ₹4,200.

Price Action: Titan’s share price was up 0.80% to trade at ₹3,764.55 as the markets opened on Friday.

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