The jewelry and watch industry is a lucrative sector that has seen significant growth over the years. Titan Co, a leading player in this industry, has posted impressive sales growth in its various segments in Q3 FY25. With a target price of ₹3,600, Titan Co seems to be on a solid growth trajectory.
In Q3 FY25, Titan Co’s jewelry business, which includes brands like Tanishq and Mia, saw a healthy festive demand with high single-digit new buyer growth. Plan gold sales grew by 24% year-on-year, while coin sales surged by 48% year-on-year. The studded range also saw a robust growth of 21% year-on-year, indicating strong consumer demand for jewelry products. Additionally, Tanishq expanded its international footprint by adding two new stores in the US and Dubai, showcasing its global ambitions.
Caratlane, Titan Co’s subsidiary focused on online jewelry sales, registered a stellar 25% year-on-year growth driven by a 26% increase in the studded portfolio. The brand also saw a strong new buyer growth of 8% year-on-year and a same-store sales growth of 16% year-on-year, highlighting its popularity among consumers.
In addition to its jewelry business, Titan Co also operates in the watches and eyecare segments, both of which showed better growth in Q3 FY25. The company added new stores in India and abroad, indicating its expansion plans and commitment to reaching a wider audience.
Despite the impressive sales growth, Titan Co is facing margin pressure due to elevated gold prices and volatility in diamond prices. This has led to an expected EBITDA margin contraction of 105 basis points year-on-year to 10% in Q3. However, with a strong sales growth outlook and a diversified product portfolio, Titan Co remains a promising investment opportunity.
In conclusion, Titan Co’s robust performance in Q3 FY25, coupled with its expansion plans and solid growth prospects, make it a compelling investment option in the jewelry and watch industry. Investors looking for exposure to this sector may consider adding Titan Co to their portfolio for long-term growth potential.
