Titan Company Ltd. share price target

Jewellery segment revenue growth was healthy (21% YoY, 27% YoY secondary, 22% like-to-like), led by benefit from shift in ‘Shraad’ from 2Q to 3Q. This also need to be seen in the context of ~16% YoY inflation in gold price and 10% YoY retail expansion.

Titan witnessed a strong demand in terms of Jewellery in June after a slack month in May. In the Jewellery segment the Total Income saw a growth of 19% YoY with domestic operations growing at ~20% YoY.

We are surprised at consensus' surprise about Titan's Jewellery margin glide path. We reiterate our view - Tanishq needs to reduce price premium (on gold, on making charges) to drive growth (see reports - link 1, 2). In 1QFY24, revenue growth in Jewellery at 19% YoY (22% SSSG) was healthy but must be seen in the context of 10% YoY retail expansion and 17% YoY inflation in gold price.