Buy Titan Company Ltd for the Target Rs. 4,150 by Motilal Oswal Financial Services Ltd
High base offset by early onset of festivities
TTAN released its pre-quarterly update for 2QFY26. Here are the key highlights:
Jewelry division
* In 2QFY26, the domestic jewelry business delivered 19% growth YoY (excl. bullion) vs. est. 14% YoY, 17% in 1QFY26 and 26% in 2QFY25.
* Surging gold prices led to a substantial increase in the ticket size, offsetting marginal YoY declines in the number of buyers.
* The impact of a high base in 2QFY25 (due to custom duty reduction) was offset by the early onset of the festive season in September this year compared to October in FY25. Further, growth was also fueled by significant investments in consumer promotions, including a powerful exchange offer and marketing initiatives, to stimulate demand amid high gold prices.
* CaratLane grew 30% YoY.
* The like-for-like growth for Tanishq and CaratLane was in double digits.
* Studded jewelry in Tanishq/Mia/Zoya portfolios collectively grew in the midteens, outpacing gold (plain) jewelry growth. Gold coins continued their strong run for the quarter, reflecting investment sentiment in this sub-category.
* TTAN added 34 new stores (net) in India — six Tanishq stores, 18 Mia stores and 10 CaratLane stores.
Watches & Wearables division
* Domestic watch business grew ~12% YoY, driven by 17% YoY growth in the analog segment.
* Growth was anchored by strong double-digit growth by the Titan brand and healthy volume offtake for the festive season.
* Smart wearables category declined ~23% YoY, continuing to mirror the broader stress in the segment.
* Fifteen net new stores were added, consisting of five Titan World stores, seven Helios stores and three Fastrack stores.
EyeCare division
* EyeCare's domestic business grew ~9% YoY, led by healthy performance of international brands and sunglasses and growth in the e-commerce channel.
* Division added five ‘Runway’ stores in the quarter.
Emerging businesses (Fragrances & Fashion Accessories and Indian Dress Wear)
* Fragrances grew ~48% YoY, led by volume growth in SKINN and Fastrack.
* Women’s Bags segment grew ~90% YoY, led by network expansion.
* Taneira revenue grew ~13% YoY, while it closed two stores in the quarter.
International business
* The business grew ~86% YoY, led by Tanishq more than doubling its business in the US market and clocking strong double-digit growth in the GCC market.
* Tanishq added a new store in Virginia, US, in 2QFY26.
For More Research Reports : Click Here
For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412
