Titan shares fall nearly 2% after Macquarie trims target price, flags impact of gold prices

Titan shares fell 1.66% to their day’s low of Rs 3,031.20 on the BSE in early trade on Tuesday after global brokerage firm Macquarie lowered its target price on the stock to Rs 4,000 from Rs 4,150 while maintaining an 'Outperform' rating.

Macquarie continues to view Titan as the preferred pick in the consumer space. The brokerage expects rising gold lease costs for smaller players to strengthen Titan’s competitiveness, while concerns over lab-grown diamonds are seen as immaterial. It has also cut FY25-27 EPS estimates by 3-4% due to higher lease costs, partly attributed to Trump’s tariff, and the near-term impact of rising gold prices on jewelry demand.

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Titan Q3 earnings

The consumer discretionary major reported a marginal dip (-0.6%) in its third quarter consolidated net profit to Rs 1,047 crore, even as the total income rose 25% YoY to Rs 17,723 crore.

The profit before tax during the quarter was flat at Rs 1,396 crore, mainly due to the impact of customs duty reduction on gold. Titan said the custom-duty-related losses on the inventory (held at the time of the duty change) have been fully realised in this quarter and hence the profitability is lower to that extent.

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The jewellery business revenues grew 26% to Rs 14,697 crore. Within this, the India business rose 25%.

Consolidated EBIT for the third quarter rose 5% YoY to Rs 1,627 crore. However, EBIT margins contracted 177 basis points to 9.2%.

Titan shares performance

On Monday, Titan shares closed at Rs 3,082.5, up 0.26% on the BSE, while the benchmark Sensex declined 0.15%. The stock has declined 18% in the past 12 months but gained 29% in the last two years. The company’s market capitalization stands at Rs 2,73,664 crore.

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