The brokerage wrote in its note that Titan is well positioned to benefit from India’s growing shift towards organised players and modern consumer preferences.
Bernstein pointed out Titan’s strong track record of delivering a 23% CAGR in earnings per share over the past two decades, while forecasting 18% revenue and 25% EBIT growth between FY25 and FY28.
Despite its growth credentials, Titan is currently trading at a five-year low price-to-earnings multiple, weighed down by concerns over three factors: a sharp rise in gold prices, intensifying competition, and the evolving dynamics between natural and lab-grown diamonds.Titan, which operates the Tanishq and CaratLane jewellery brands, recently posted a 52.5% year-on-year jump in first-quarter profit to ₹1,091 crore, supported by higher gold prices.
Revenue rose 24.6% to ₹16,523 crore, while EBITDA margin improved to 11.1% from 9.4% a year earlier, even as consumers shifted to lower-carat and lightweight designs.
Analyst sentiment remains broadly positive: out of 35 covering the stock, 26 have a ‘Buy’ rating, six recommend ‘Hold’ and three suggest ‘Sell’.
Shares of Titan ended with gains of 0.76% at ₹3,648.70. The stock has risen over 12% so far this year.
