JM Financial upgrades Titan to Buy., raises target price to Rs 3,725

JM Financial has upgraded Titan Company to Buy (from Hold earlier) with a revised target price of Rs 3, 725 (Rs 3,550 earlier). The current market price of Titan is Rs 3559.5. The time period given by the analyst is a year when Titan price can reach the defined target. Titan Company, incorporated in 1984, is a Large Cap company with a market cap of Rs 316691.08 crore, operating in Gems and Jewellery sector.

Titan's key products/revenue segments include Jewellery, Other Operating Revenue, Watches, Eyewear, Others, Other Services for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 15032.00 crore, down -15.87 % from last quarter Total Income of Rs 17,868 crore and up 18.80% from last year same quarter's Total Income of Rs 12653.00 crore. The company has reported net profit after tax of Rs 871 crore in the latest quarter.

The company?s top management includes Mr.Arun Roy, Mr.Ashwani Puri, Mr.Anil Chaudhry, Mr.Sandeep Singhal, Ms.Sindhu Gangadharan, Dr.Mohanasankar Sivapraksam, Mr.Sandeep Nanduri, Mr.Bhaskar Bhat, Ms.Mariam Pallavi Baldev, Mr.C K Venkataraman, Mr.N N Tata, Mr.B Santhanam. Company has B S R & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 89 Crore shares outstanding.

Investment Rationale
Surge in gold prices impacted consumer sentiment and resulted in shift towards (i) lower carat products, (ii) light weight jewellery products, and (iii) products with lower making charges. Correction in gold price, if any, will be favourable and will result in increasing number of buyers and improved margins. The management has maintained its Jewellery EBIT margin guidance of 11-11.5% and is targeting high double digit revenue growth for the next few years. JM Financial cut its FY26 EPS estimates by ~1% due to higher interest and depreciation expense, while they increased FY27 EPS estimates by ~2% led by improved EBITDA margin and expected reduction in interest expenses on lower debt and GML rate normalisation. The brokerage has increased its P/E multiple from 55x (earlier) to 57x led by (1) stability in margins, and (2) robust 15%/27%/33% revenue /EBITDA/ PAT CAGR over FY25-27. They have upgraded its rating from HOLD to BUY with a revised target price of Rs 3,725 (earlier Rs 3,550) 57x Mar?27 EPS.

Promoter/FII Holdings
Promoters held 52.9 per cent stake in the company as of 31-Mar-2025, while FIIs owned 17.82 per cent, DIIs 11.9 per cent.