Motilal Oswal Sees Titan Company Reaching Rs 5250

Titan Company Aims for Substantial Growth Over FY26-30

Titan Company (TTAN), a leading player in the jewelry industry, recently held an analyst meet to discuss its growth and margin outlook in a turbulent market. Despite the current challenges, the company aspires to significantly scale up its businesses over the next five years, from FY26 to FY30. At a consolidated level, TTAN is targeting a 2.0x revenue and EBIT growth each by FY30, which translates into an implied ~20% CAGR over FY26-30.

Within the domestic portfolio, the jewelry business, including Tanishq, Mia, and Zoya, is expected to achieve 2.0x revenue and 1.9x EBIT. In contrast, CaratLane has a more aggressive target of 2.3x revenue and 2.5x EBIT (~25% CAGR), reflecting continued premiumization and operating leverage. The watches division is expected to deliver 2.1x revenue (~20% CAGR) and 2.2x EBIT, while EyeCare is guided to achieve 2.2x revenue and 2.5x EBIT.

On the international front, the company expects the overseas Tanishq and Mia businesses to scale to 2.5x revenue and 5.5x EBIT. For Damas, management has outlined a 2.0x revenue ambition, with high single-digit margins. TTAN's emerging businesses portfolio carries the most ambitious revenue aspiration domestically, targeting 3.4x revenue by FY30, with profitability expected to reach mid-single-digit margins.

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Growth Targets Comparison

Given TTAN's long-term growth prospects and the historically positive stock performance following a year of regulatory announcements, we maintain a positive outlook. We model sales, EBITDA, and APAT CAGR of 16%/20%/23% over FY26-28E, and reiterate our BUY rating on the stock with a TP of INR5,250 at 60x Mar'28E EPS.