The Titan share price has surged over 4% in intra-day trade as investors cheered a quarterly update that outperformed even the most optimistic market predictions. Following these, Nomura and JM Financial have both maintained high conviction ‘Buy’ ratings on the stock. Nomura has set a target price of Rs 4,500, implying a steady upside from current levels, while JM Financial remains even more bullish with a target price of Rs 4,650, suggesting a potential upside of over 8%.
The massive rally comes after both JM Financial and Nomura released detailed analysis reports alongside the company’s official Q3 update, confirming a significant beat in sales growth across all major segments.
10 reasons why D’Street is upbeat onTitan’s Q3 update 1. Massive revenue jump beats street estimates
According to JM Financial, Titan Company‘s domestic jewellery revenue grew by approximately 38% year-on-year. This performance came as a significant shock to the market, as it far exceeded the firm’s initial growth estimates of 25%. The delta between the expected 25% and the actual 38% represents a massive volume of business that suggests Titan is gaining market share even in a high-price environment.
2. Consolidated sales explosion across all brands
Nomura pointed out in its “Quick Note” that consolidated sales growth, excluding bullion, reached roughly 40% year-on-year. The company’s official update confirms this surge was significantly higher than the 25-30% range that both the firm and the wider market consensus had anticipated. This 40% growth figure is particularly impressive given the high base of the previous year, proving that Titan’s brand pull remains resilient across various price points.
3. International business skyrockets beyond expectations
The company’s official data reveals a 79% year-on-year growth in its international business operations. This global expansion contributed significantly to the overall consumer business growth of 40% recorded during the December quarter. As Titan expands its footprint in markets like the US and the Middle East, this segment is becoming a more prominent part of the overall revenue mix, providing a hedge against domestic market fluctuations.
4. The 65% gold price surge: A double-edged sword
A primary driver for this revenue growth was the massive spike in the value of gold. JM Financial observed a 65% year-on-year increase in gold prices during the quarter. While such high prices typically deter buyers, they boosted the Average Selling Price (ASP) enough to compensate for a lack of growth in the actual number of buyers. Essentially, while the store footfalls and transaction counts remained “flattish,” the value of each transaction was so high that it propelled the company to record revenues.
5. Gold coins emerge as a preferred investment asset
In times of economic uncertainty and high inflation, gold is often viewed as a safe haven. Nomura’s analysis showed that sales of gold coins nearly doubled during the third quarter compared to the same period last year. This trend indicates that Indian consumers are increasingly viewing gold as a critical investment asset rather than just a luxury item. The shift toward investment-grade gold helped fill the gap during periods when jewellery demand might have otherwise softened.
6. Resilience in festive and wedding collections
Despite the pricing pressure, the “plain gold jewellery” category saw growth in the late-thirties percentage range. JM Financial attributed this specific success to a strong consumer preference for design-led and aesthetic premium pieces throughout the busy wedding and festive seasons. For many Indian families, wedding purchases are non-discretionary, and Titan’s Tanishq brand remains the destination of choice for high-trust, high-value wedding sets.
7. CaratLane continues its rapid growth trajectory
The digital-first jewellery brand CaratLane remains a primary engine for Titan’s overall expansion. Both Nomura and JM Financial reports confirmed that the brand achieved a 42% revenue jump, maintaining its position as a high-growth segment. CaratLane’s ability to attract younger, urban consumers with contemporary designs and lower entry price points for diamond jewellery continues to complement Tanishq’s more traditional appeal.
8. Tactical “Gold Exchange” offers sustain engagement
To keep customers coming into stores despite the sticker shock of record-high gold, Tanishq launched a strategic gold exchange offer. JM Financial reports that this specific tactic was instrumental in keeping consumer engagement high even after the traditional festive window had closed. By allowing customers to trade in old gold at competitive rates, Titan lowered the barrier to entry for new purchases, effectively recycling old jewellery into new sales.
9. Aggressive retail network expansion continues
Titan is not resting on its laurels. The company significantly ramped up its physical presence by adding 56 new stores during the quarter. This expansion brings the company’s total retail network to 3,433 stores. According to the company financials, these additions were spread across various formats, including Tanishq, Mia, and CaratLane, ensuring that the brand remains within reach of consumers in both Tier-1 and Tier-2 cities.
10. Studded jewellery and new brand horizons
While plain gold led the charge, the studded jewellery segment (diamonds and precious stones) clocked healthy double-digit growth in the mid-twenties. Additionally, the company introduced ‘beYon’, a new brand dedicated to lab-grown diamond jewellery. JM Financial views this as a strategic move to capture the evolving preferences of modern jewellery buyers who are looking for sustainable or more affordable luxury options without compromising on the diamond aesthetic.
Watches, eyecare, and more
While jewellery is the crown jewel, other segments also posted strong numbers. The watches and wearables division continued to see traction, driven by new launches and the premiumization trend. The eyecare segment also benefited from the network expansion. The company’s official update noted that the domestic business segments comprising jewellery, watches, eyecare, and emerging businesses all contributed to the robust 38% domestic growth.
The consensus from Nomura and JM Financial, backed by the company’s official Q3 update, is that Titan is successfully capturing both the investment-led and consumption-led demand for gold. While the number of individual buyers did not increase, the significantly higher spend per customer and the 40% jump in the consumer business have solidified the bull case. With a target price of Rs 4,650, market experts believe that the luxury giant still has plenty of room to run.