Editor’s Note
This article highlights how a bullish analyst upgrade from Prabhudas Lilladher, with a ‘Buy’ rating and a ₹4600 target, is fueling Titan Company’s stock rally. The note underscores confidence in the company’s growth, especially its strategic push into the lab-grown diamond market.
Analyst upgrades have boosted the rally in Titan Company’s stock. Prabhudas Lilladher has recommended a ‘Buy’ for Titan Company and set an ambitious target price of ₹4600. This move signals strong confidence in the diversified retail giant’s growth momentum, particularly regarding its strategic expansion in the emerging Lab-Grown Diamond (LGD) market.
The brokerage firm believes that Titan’s new LGD-focused brand, ‘B Youn’, will significantly expand the company’s market reach. While acknowledging that some cannibalization may occur from existing brands like CaratLane and Mia, the analysis emphasizes that the increased market size and acquisition of new customer segments will outweigh these shifts. This strategy is seen as a measured approach to cater to the growing demand in the daily-wear studded jewelry segment.
In addition to new initiatives, Titan’s established businesses continue to show resilience and growth. The consumer division recorded 40% growth in the third quarter, primarily driven by a 41% increase in domestic jewelry sales. The watches and eyewear segments also recorded healthy double-digit and 16% growth, respectively. Analysts expect this momentum to be sustained, supported by strong gold prices and continued consumer demand.
Prabhudas Lilladher has revised its Earnings Per Share (EPS) estimates for FY26, FY27, and FY28 upwards by 6.8%, 4.5%, and 4.6%, respectively. This optimism is reflected in the increased target price from ₹4397 to ₹4600. The firm projects a 27.4% Compound Annual Growth Rate (CAGR) for EPS for FY25-28, underlining a positive outlook for the company’s financial performance.