Titan Company Ltd. share price target

Titan continues to achieve new feat, recording stellar growth in Revenue of 25% YoY (Standalone) at ? 8,553 Cr with a 3 year CAGR growth of 25.1%. The Jewellery segment witnessed a robust Total Income growth by 24% YoY at ? 7,576 Cr along with domestic operations increasing by 21% YoY on the back of strong wedding season with over all high retail sales growth.

Jewellery segment revenue growth maintained healthy momentum (17% 4Y CAGR). SSSG at 19% is positive but was primarily driven by higher gold price (14% YoY). Despite volatility in gold prices (in Apr’23), strong festive-season-led revenue recovery (in second half) is comforting.

Titan Company has come a long way from pioneering in just branded wrist watches to creating an empire with several businesses (Jewellery, Wearables, Fragrances, Accessories and Ethnic Wear) under its roof. The company has reported decent numbers in the latest quarter with a YoY growth of 13.4% clocking in ? 11,383 Cr of Revenue.

The rise in (relative) competitive intensity in jewellery retailing led to melting-away of gold-rate premium charged by category leaders (vs historically) compared to competition. We observe that in key cities (top 9 cities which contribute ~30-35% of Tanishq’s total retail area), (1) premium charged by Tanishq has declined by ~50% (to 1-3%) from historical levels.