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On Friday, Goldman Sachs analyst Arnab Mitra updated Titan Company’s stock price target to INR4,100, marking an increase from the previous INR3,900. Alongside the revised target, the firm maintained a Conviction Buy rating for the company’s shares. The adjustment follows Titan’s recent financial performance, particularly in its jewelry segment.
Titan Company’s jewelry business reported an EBIT margin of 11.9%, surpassing the forecasted range of 11-11.5%. Year-over-year, the jewelry segment’s EBIT grew by 22%. Mitra noted that, even after accounting for certain one-time factors, the adjusted margin stood at 11.6%, still ahead of Titan’s guidance.
Despite facing challenges from the sharp inflation in gold prices in the fourth quarter of the fiscal year 2025, Titan achieved this financial outcome. The company saw its highest growth in gold coins sales, which increased by 64% year-over-year, despite gold coins having the lowest gross margins. Conversely, diamond-studded jewelry, which yields the highest gross margins for Titan, exhibited the lowest growth at 12% year-over-year.
The company effectively managed its margins through strategic overhead management and leveraged operating efficiencies from robust revenue growth. These strategies have allowed Titan to maintain strong profitability metrics in a volatile market, leading to the increased confidence from Goldman Sachs reflected in the revised price target.
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