06-Nov-2026 08:20:18
CITI on Titan ; Buy, TP Rs 5875
Domestic jewellery (TMZ) revenue/EBIT grew (ex-bullion and ex one-off) 20%/26% YoY with margins improving by 60bps YoY to 11.7% (vs Citi est of 10.7%). Reported PAT growth of 56% was higher led by one-time benefit of custom duty (Rs4.9bn) partly offset by MTM loss of 60bps in jewellery. Management highlighted (a) festive saw very strong start with some softness in the interim; (b) priority is to drive buyer growth and revenue growth and there are levers to offset weak gold price impact on ticket size. While growth in 2H will likely be soft vs 1H due to high base bundled with moderating gold price, we believe, overall earnings growth will still be relatively strong (high teens) with potential to surprise through mix improvement
TITAN COMPANY LIMITED