Titan Share Price Erases Gains, Macquarie Maintains 'Outperform' After Q2 Growth

Titan Co.'s share price erased gains after rising over 2% on market open on Monday. The company's standalone revenue rose in the second quarter of fiscal 2025, as per its business update.

Macquarie has reaffirmed its ‘outperform’ rating on Titan, setting a price target of Rs 4,100 per share, which suggests an 11% upside from current levels.

The company's pre-Q2 sales exceeded expectations, driven by a notable 26% growth in the jewellery segment and a 20% increase in watches, the brokerage noted. It anticipates a standalone Ebitda growth of 9% in the July-September period, building on a forecast of 25% overall sales growth. However, it estimates a 180 basis point decline in jewellery margins due to a weaker product mix.

Titan Co. announced 25% increase in standalone revenue for the second quarter. The Tata Group-company expanded its retail footprint by adding 75 stores during the quarter, bringing its total network to 2,885 locations.

The jewellery division, which constitutes more than three-fourths of Titan’s revenue, reported 26% growth in the domestic market, along with the addition of 24 new stores. This surge follows a relatively soft performance in the first quarter and comes in the wake of reduced customs duties on gold imports, which dropped from 15% to 6%. The lower duties contributed to a double-digit increase in gold sales for the quarter.

Titan's watches and wearables division saw a 19% year-on-year growth in its domestic business, with a healthy 25% revenue increase in the analogue watch segment. However, the wearables segment, which includes smartwatches, continues to face a decline, experiencing low double-digit decreases in the second quarter.

Shares of Titan Co. rose as much as 2.18% at market open, but later fell more than 3%. They pared loss to trade 2.51% lower at Rs 3,578 apiece, as of 10:13 a.m., compared to a 0.17% advance in the NSE Nifty 50.

The stock has risen 9.61% in the last 12 months. Total traded volume so far in the day stood at 5.2 times its 30-day average. The relative strength index was at 39.

Out of 33 analysts tracking the company, 17 maintain a 'buy' rating, 11 recommend a 'hold' and five suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 4.9%.