The share price of Titan jumped over 4% in early trade today. This surge in share price was in response to the company’s second-quarter business update. Titan’s domestic jewellery segment reported 19% year-on-year growth.
Let’s take a look at what is the brokerages say on this stock
Motilal Oswal on Titan
Motilal Oswal maintained a buy rating on Titan, setting a target price of Rs 4,150. This implies an upside of 21%. The brokerage noted, “In 2QFY26, the domestic jewellery business delivered 19% growth YoY (excl. bullion) vs estimated 14% YoY, 17% in Q1FY26 and 26% in Q2FY25.”
Surging gold prices increased ticket sizes, while early festive demand and marketing initiatives like the exchange offer helped sustain sales. CaratLane grew 30% YoY, and the like-for-like growth for Tanishq and CaratLane remained in double digits.
“Studded jewellery in Tanishq/Mia/Zoya portfolios collectively grew in the mid-teens, outpacing gold (plain) jewellery growth,” the report noted.
The brokerage highlighted, “Growth was anchored by strong double-digit growth by the Titan brand and healthy volume offtake for the festive season.” The analog watch segment grew 17% YoY, while smart wearables declined roughly 23%.
EyeCare sales rose 9% YoY, led by international brands, sunglasses, and e-commerce. Five new Runway stores were added, raising the total to 877. Emerging businesses also reported strong growth, such as fragrances, women’s bags, and Taneira, despite closing two stores.
The international segment grew 86% YoY, with Tanishq more than doubling its US operations and expanding in the GCC.
Nomura on Titan
Nomura retained a Buy rating, with a target price of Rs 4,275. The brokerage noted, “Overall domestic jewellery grew by 19% y-y vs our estimate of 12% y-y. This is despite Q2 having a high base YoY due to customs duty being cut from 15% to 6% in July, 2024.” They believe that the Shradh period and the high gold prices also impacted footfall. Early festive demand and promotions like the old gold exchange offer supported growth.
The brokerage added, “Like-for-like sales growth for Tanishq and CaratLane was in double-digit. Studded jewellery in TMZ collectively grew in mid-teens, outpacing plain gold jewellery growth. Gold coins continued to report strong growth (~50% in past few quarters). Jewellery EBIT margins are expected to remain range-bound.
Nomura highlighted, “TMZ opened around 24 stores during 2Q, vs our expectation of 20 stores while Caratlane opened 10 stores, in line with our expectation of 10 stores, taking the total number of stores to 779 / 341 stores, respectively.”
Tanishq also inaugurated its first wedding destination store, ‘Rivaah’, in Delhi. “We believe this is an important step in establishing its pole position in luxury/super-premium wedding jewellery, which will be supportive for margins,” the report noted.