The watches and wearable segment’s domestic business grew 20 per cent y-o-y
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AMIT DAVE
Shares of Titan Company recovered strongly on Tuesday after the Tata Group company released a robust business update for the March 2025 quarter (Q4FY25), highlighting a broad-based performance across its key verticals and consistent expansion in its retail footprint. Following the update, most brokerages remained positive on the stock.
From a 52-week low of ₹2,925 registered during Monday’s mayhem, the stock on Tuesday rebounded to close at ₹3,122.30, up 3.3 per cent from the previous day’s close.
Strong finish
In a business update, the Tata group company said it is wrapping up FY25 on a high note, reporting a 25 per cent y-o-y growth in revenue for Q4, supported by healthy momentum across its jewellery, watches, eyewear, and emerging businesses. The company added 72 net stores during the quarter, taking its total consolidated retail footprint to 3,312 stores.
Titan’s jewellery division, which remains its core business, posted a 24 per cent y-o-y growth in Q4FY25; the watches and wearable segment’s domestic business grew 20 per cent y-o-y; eyecare division’s domestic business grew 18 per cent; and Caratlane business grew 22 per cent in the fourth quarter of previous fiscal, the company informed the exchanges.
Bullish outlook
According to JM Financial, overall standalone sales are expected to grow about 13 per cent y-o-y; 25 per cent growth adjusted of bullion sales in the base quarter led by 25 per cent y-o-y growth in jewelry business (ex-bullion). “We expect jewellery EBIT margin of 10.8 per cent (ex-bullion sales; flat YoY). Overall, we estimate standalone EBITDA/ PAT growth of 22/ 11 per cent YoY, 9/10 per cent ahead of our initial estimate,” it added.
According to Macquarie, “healthy growth in Q4 is encouraging and enhances confidence in our EPS estimates.” It maintained its Outperform rating on the stock with a target price of ₹4,000.
Morgan Stanley retained its Overweight stance on the stock with a target price of ₹3,876. According to it, jewellery business delivered single digit buyer growth owing to sluggish demand at low price points.Demand at higher price points sustained thus driving high double digit ticket size growth.
Titan’s robust Q4 business update highlights the company’s resilience and diversified growth across key segments like jewellery, eyewear, and wearables, said AngelOne. While rising gold prices impacted affordability in lower price ranges, the strong overall revenue momentum and expansion in premium offerings suggest that Titan continues to strengthen its leadership in the lifestyle and luxury retail space, the brokerage added.
Citigroup, however, reiterated its Neutral rating on Titan Company with a target price of ₹3550.
Titan’s jewellery segment to grow 22 per cent, higher gold prices may influence the mix of revenues and margins will be key, said Morgan Stanley in a report.
Published on April 8, 2025
