The Titan share price has surged over 4% in intra-day trade as investors cheered a quarterly update that outperformed even the most optimistic market predictions. Following these, Nomura and JM Financial have both maintained high conviction ‘Buy’ ratings on the stock. Nomura has set a target price of Rs 4,500, implying a steady upside from current levels, while JM Financial remains even more bullish with a target price of Rs 4,650, suggesting a potential upside of over 8%.
The massive rally comes after both JM Financial and Nomura released detailed analysis reports alongside the company’s official Q3 update, confirming a significant beat in sales growth across all major segments.
Reasons
Consolidated sales explosion across all brands
Nomura pointed out in its “Quick Note” that consolidated sales growth, excluding bullion, reached roughly 40% year-on-year. The company’s official update confirms this surge was significantly higher than the 25-30% range that both the firm and the wider market consensus had anticipated. This 40% growth figure is particularly impressive given the high base of the previous year, proving that Titan’s brand pull remains resilient across various price points.
The 65% gold price surge: A double-edged sword
A primary driver for this revenue growth was the massive spike in the value of gold. JM Financial observed a 65% year-on-year increase in gold prices during the quarter. While such high prices typically deter buyers, they boosted the Average Selling Price (ASP) enough to compensate for a lack of growth in the actual number of buyers. Essentially, while the store footfalls and transaction counts remained “flattish,” the value of each transaction was so high that it propelled the company to record revenues.
CaratLane continues its rapid growth trajectory
The digital-first jewellery brand CaratLane remains a primary engine for Titan’s overall expansion. Both Nomura and JM Financial reports confirmed that the brand achieved a 42% revenue jump, maintaining its position as a high-growth segment. CaratLane’s ability to attract younger, urban consumers with contemporary designs and lower entry price points for diamond jewellery continues to complement Tanishq’s more traditional appeal.
Studded jewellery and new brand horizons
While plain gold led the charge, the studded jewellery segment (diamonds and precious stones) clocked healthy double-digit growth in the mid-twenties. Additionally, the company introduced ‘beYon’, a new brand dedicated to lab-grown diamond jewellery. JM Financial views this as a strategic move to capture the evolving preferences of modern jewellery buyers who are looking for sustainable or more affordable luxury options without compromising on the diamond aesthetic.