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Hidden Gem – Titan Company

ICICIdirect Research 09 Jan 2026 DISCLAIMER

Titan Company (Titan) reported its Q3FY26 business update, wherein the jewellery business delivered strong revenue growth of 41% YoY (ahead of our expectation of 22%), driven largely by higher ASPs amid an inflated gold price environment, while buyer growth remained flattish.
Its retail like for like growth stood in low thirties. Buyer growth remained flat despite high gold prices. Festive season and strong wedding season aided better than expected performance in Q3FYT26.
Watches and eyewear business registered double digit revenue growth of 13% and 16% during the quarter. We expect Titan’s consolidated EBIDTA margins to remain at 10%.
We expect Titan’s revenues and PAT to grow at CAGR of 18% and 23% over FY25-28. However, Strong jewellery performance provides an opportunity to further increase the earning estimates for FY27E and FY28E.
Titan launched its new store brand ‘beYon’ marking its official foray in the lab grown diamond (LGD) category.
An entry of large jewellery player like Titan in LGD will bring in more trust in the category. This will help LGD as a category to grow in the long run. According to jewellery players LGD jewellery is less than 1% of the overall jewellery industry sales in India.
Studded jewellery constitutes 23% of Titan’s jewellery sales, growing in strong double digit. We believe LGD will provide additional lever for Titan’s studded mix to improve in the long run. Improved mix can also add to the profitability as LGD jewellers are achieving EBIDTA margins in the range of 18-20%.
The stock is currently trading at 65x and 53x its FY27E and FY28E EPS. We recommend Buy with a price target of Rs.4,715 rolling it over FY28E EPS of Rs.78.6 valuing at 60x.

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