Titan on the cusp of a major rebound; UBS raises target by 31%

Swiss investment bank UBS has upgraded Titan Company Ltd

., part of the Tata Group, to a 'Buy' rating from 'Neutral', calling it a structural winner in the consumer discretionary space.

The brokerage has also raised its price target on the stock by 31% to ₹4,700 from ₹3,600 earlier. The revised target implies a potential upside of about 26% from Monday's closing levels.

UBS expects a major rebound in Titan's earnings, underpinned by its strong brand equity, deep consumer trust, and a manageable threat from lab-grown diamonds.

The brokerage forecasts earnings growth of 46% in FY26 and 21% in FY27, driven by robust momentum across businesses.

Titan's Q2 update

The company's domestic jewellery division posted 19% year-on-year growth, largely driven by higher average ticket sizes amid surging gold prices, even though buyer counts declined marginally.

Within jewellery, studded designs grew in the mid-teens, outpacing plain gold jewellery, while gold coins continued their strong run.

Performance across other segments was equally encouraging. The watches business grew 12% year-on-year, while EyeCare rose 9%. CaratLane maintained its momentum with a 30% growth, and international operations surged 86%, led by a twofold increase in the US market.

Among emerging businesses, growth stood at 37%, driven by a 48% rise in fragrances, a 90% jump in women’s bags, and a 13% growth in Taneira.

In Tuesday's special Muhurat trading session, Titan shares closed 0.23% lower at ₹3,728.95. The stock, however, has gained 8.4% over the past month and is up nearly 15% year-to-date.