Regardless of the wholesome headline numbers, analysts anticipate the corporate’s underlying progress within the jewelry enterprise, which contributes almost 88% of general income, to average sequentially as larger gold costs and delayed festive purchases weigh on demand.
Brokerages largely anticipate Titan to report consolidated income progress within the vary of 10–13% YoY, with standalone jewelry gross sales ex-bullion rising round 12–14%. The watches and eyewear divisions are additionally anticipated to submit double-digit progress, reflecting regular shopper demand.
JM Monetary estimates standalone gross sales progress of about 6% YoY, or 13% excluding bullion, pushed primarily by a 12% enhance in jewelry gross sales (ex-bullion), an 18% rise in watches, and a 12% acquire in eyewear. The brokerage expects the standalone jewelry EBIT margin to come back in at 11.1%, about 30 foundation factors decrease than final yr, given the influence of elevated gold costs and a slower studded jewelry combine.
Nonetheless, general standalone EBITDA and PAT are projected to rise 43% and 46% YoY, respectively, largely as a result of weak base impact from final yr’s customs duty-related losses.
Kotak Equities additionally expects jewelry income to develop round 14% YoY, slower than the 25% progress seen a yr in the past. The agency attributed this moderation to a pointy surge in gold costs between August and September, up 18% in simply six weeks, which doubtless postponed some festive-season purchases. Nonetheless, early festive demand in southern markets is anticipated to have cushioned the influence.Kotak estimates the share of studded jewelry to remain flat YoY at round 30%, marking the primary signal of restoration on this section after 4 quarters of decline. The brokerage expects 22% progress in watches, pushed by sustained demand for analogue fashions, and 14% progress in eyewear, supported by increasing retail presence and enhancing footfall.On the margin entrance, Kotak initiatives the standalone jewelry EBIT margin (ex-bullion) to carry regular at 11.3%, aided by value efficiencies and a balanced product combine, offset by gold value inflation. Margins for the watches and eyewear segments are estimated at 16.5% and 10%, respectively.
Nuvama sees Titan’s general income rising 13% YoY, led by 8% progress in core jewelry gross sales and double-digit progress throughout different verticals. It expects jewelry EBIT margins close to 11%, reflecting subdued productiveness amid excessive gold costs and a delayed festive demand cycle.
Motilal Oswal, in the meantime, fashions a 14% YoY enhance in standalone income (ex-bullion) and expects Tanishq’s like-for-like gross sales to rise round 11%. The brokerage anticipates steady EBIT margins of about 11.5% within the jewelry section and sees continued energy in CaratLane, whose income is projected to climb 25% YoY with flat margins of seven%.
Whereas gold value volatility and delayed festive spending may restrict near-term upside, brokerages stay optimistic on Titan’s long-term progress trajectory, citing its robust steadiness sheet, model fairness, and diversified product portfolio.
(Disclaimer: Suggestions, ideas, views and opinions given by the specialists are their very own. These don’t characterize the views of The Financial Occasions)
