Brokerages Bet On Titan To Continue Shining After Q1 Results

Brokerages maintained their bullish stance on Titan after the Tata Group company reported Q1 results on Friday. 

What Happened: Titan reported a 0.9% decline to ₹770 crore in the June quarter. The company's revenue from operations was up 8% to ₹12,053 crore. The jewellery segment's total income rose 9% year on year to  ₹9,879 crore and EBIT was at ₹1,103 crore with a margin of 11.2%. 

Brokerage Views: Macquarie maintained "outperform" call with a target price of ₹4,100. Q1 was a best driven by strong jewellery margin, the brokerage firm said, adding that it is optimistic for the rest of FY25.

The research firm pointed out that the company expects lower customs duties to improve the operating environment and sees higher marketing spends as it focuses on market share gain. 

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Goldman Sachs maintained "buy" call and hiked the target price to ₹3,750. Q1 EBITDA was marginally ahead of expectation, the brokerage said. The jewellery margin was a positive surprise. The research firm sees a pick-up post the cut in gold import price. The one-off impact likely from the gold import duty cut is in line with the estimates, the research firm said. 

Morgan Stanley had a "equal weight" call with a target price of ₹3,620. The Q1 topline growth was weak but in expected lines and the profitability was in line with expectations, the research firm said.

The company has seen some benefits from the recent custom duty cut, and gold price stability is the main factor to watch for the stock, the brokerage added. According to the research firm, Titan is going to be far more competitive going forward and will maintain overall market share. 

Price Action: Shares of Titan were down 3.15% at ₹3,353.45 on Monday morning along with the broader markets.

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