The Goldman Sachs note said that Titan’s EBIT margin has moderated in the last six to seven quarters because of the rising competition from other branded jewellery chains and the impact of a sharp increase in gold prices.
It added Titan has taken a one-time reset of its margin to improve its price competitiveness and has also taken measures to offset the impact of the increase in gold prices on its margins.Goldman Sachs expects Titan’s margin to be stable hereon and expects its standalone jewellery business to grow at a Compounded Annual Growth Rate (CAGR) of 18% over financial year 2025-2027.
Titan reported a 5% decline in its third quarter net profit at ₹990 crore compared to ₹1,040 crore in the previous year. It was also lower than Street estimates of ₹1,134 crore.Its revenue increased by 23.3% to ₹16,097 crore compared to the previous year’s ₹13,052 crore. A CNBC-TV18 poll had expected the company’s revenue to improve to ₹16,710 crore.
Titan is also the largest holding of late stock market veteran Rakesh Jhunjhunwala. As per the latest shareholding pattern, Rekha Jhunjhunwala has a 1.07% stake, while the Estate of Late Rakesh Jhunjhunwala has a 4.07% stake. At the current price, the entire stake is currently valued at over ₹14,000 crore.
Out of the 35 analysts that have coverage on Titan, 20 of them have a “buy” rating, 10 say “hold”, while five of them have a “sell” rating on the stock.
Shares of Titan are currently trading little changed at ₹3,081.9, having declined 20% from its recent high of ₹3,867.
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