Titan Company: Prabhudas Lilladher Initiates Coverage with Buy Rating, Targets Rs 5161

Titan Company Sees Strong Long-Term Growth Prospects

Prabhudas Lilladher's research report on Titan Company highlights the company's confidence in delivering strong long-term growth across various business segments. At the analyst meet, management reiterated its commitment to achieving sustained premiumization, product innovation, a consumer-centric operating strategy, and a strong balance sheet, which it believes will drive growth.

The company is looking to double its sales on a consolidated basis over the next four years, with significant growth expected in key segments such as Domestic Jewellery, Watches, Eyewear, and TEAL. Specifically, these segments are expected to grow by 90%, 120%, 150%, and 110%, respectively. The company's International Business Division (IBD) is also expected to benefit from the effective absorption of DAMAS and the restaging of its Middle East business.

While near-term demand may be affected by factors such as elevated gold prices, geopolitical uncertainties, and the impact of Adhik Maas, Titan expects conditions to improve in the coming quarters. The company does not anticipate any meaningful supply-chain disruptions.

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Outlook

We expect standalone earnings per share (EPS) to grow at a compound annual growth rate (CAGR) of approximately 25% over the fiscal years 2026-2028, driven by healthy growth across Jewellery, Watches, and emerging businesses. Based on this outlook, we arrive at a sum-of-the-parts (SOTP)-based target price of ₹5,161, which remains unchanged.

We retain our BUY recommendation for Titan Company.

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