Titan shares ended the day with over 6% losses. The stock plunged in intra-day trade on concerns about whether the growth can be sustained despite reporting strong Q1 sales, both locally and globally. The Q1 performance showcased healthy momentum despite gold price volatility. However, the studded mix
trended lower by 100 bps YoY. Motilal Oswal sees potential for the Titan stock price to scale up over 16% from current levels and has recommended Buy with a target price of Rs 4,250 per share.
Motilal Oswal on Titan: Strong traction in jewellery segment
The surge in gold prices between May to mid-June and volatility thereafter may lead to some softening in customer purchases. Despite that, domestic jewellery revenue grew 18% YoY (ex-bullion) (est. 22% YoY in Q1FY26, 9% YoY in Q1FY25). Akshaya Tritiya, particularly, saw strong sales traction. The company added 19 net new stores across the country: three in Tanishq, seven in Mia, and nine in CaratLane.
However, one factor that remained a concern for the street was that the Like-for-like (LFL) domestic growth for Tanishq, Mia, and Zoya (TMZ) remained in low double digits, driven by ticket size growth across formats. CaratLane posted healthy double-digit like-for-like growth, but buyer growth remained flat YoY for both TMZ and CaratLane.
Motilal Oswal on Titan: Watches & Wearables division steady
The company’s domestic watches business grew 23% YoY, led by strong analog performance in both volume and value. Sonata topped growth charts on the back of its refreshed offering line-up, followed by Titan. Fastrack and international brands also delivered healthy double-digit growth. Nine net new stores were added. This included four in Titan World and five in Helios.
Motilal Oswal on Titan: Eyecare division positive
The domestic business for the eyecare division grew 12% YoY, powered by retail and e-commerce. Growth was supported by international and House brands. Titan Eye+ opened 12 new stores and closed 32, resulting in a net of 20 closures for the quarter.
That apart, the company’s emerging businesses. Fragrances grew 56% YoY, led by volume growth in SKINN and Fastrack.The women’s bags segment grew 61% YoY. The overall international business also grew a healthy 49%.
Titan share market performance
The Titan share price is down nearly 3% over the last 1 month. For the year, the share price is however, up 8.99%. That said, some of the analysts are still worried about the valuation at current levels.