Target: ₹2,992

CMP: ₹2,734.95

We remain constructive on TITAN post Q4 results given strong underlying demand trends in Jewellery and scalability in wearables, eyewear and taneira. 3Q results were a miss on EBIDTA due to lower margins in watches, eyewear and higher losses in emerging businesses. Titan is focusing on volume led growth in jewellery given rising competition while superior mix and scale will help sustain margins.

We expect Titan Company to capitalise on long term growth opportunity led by: jewellery segment gains due to network expansion, regional thrust and higher growth in sub brands like Mia, Zoya and Caratlane; Omni-channel strategy across jewellery, watches and eyewear; new growth drivers like Caratlane, Titan Eye+, Taneira; and strong growth in wearables with smartwatch volumes exceeding 1mn in FY23.

We believe Eyewear and CaratLane have reached critical mass with FY23 EBIT of ₹98 crore and ₹166 crore (96 per cent and 177 per cent growth) and will be a key growth driver in coming years. Titan Company is gradually emerging as a lifestyle play which will help sustain premium valuations.