Titan is likely to post 15-20% top line growth in FY24-FY27 period

Bengaluru, 3 June: Jewellery to watches maker, Titan is likely to post 15-20 per cent growth in its top line during FY24-FY27 period on the back of higher focus on jewellery business, rising focus on emerging segments.

“Titan in looking at 15-20 per cent topline growth over FY24-27 as it aims to further scale up both jewellery and watches and increase investment behind emerging segments like Taneira, Titan Eye+, wearables and women hand bags,” brokerage firm, Prabhudas Lilladhers said in a report.

According to the brokerage firm, although jewellery business is likely to sustain 15-20 per cent sales CAGR, EBIT margin guidance band is cut from 12-13 per cent to 11.5-12.5 per cent.

“Near term pressure emanates from rising competition from both regional and national players, impact of rising gold prices on demand and its ability to charge premium on physical gold and making charges,” the report noted.

Titan is likely to focus on the premium segment of its watch business. “Watch business will focus on premium/economy segment, which has just single digit market share. However, price erosion in high growth wearables segment will drag margins in the interim,” the report said.

Margins in the wearable segments, especially in the smart watch space, have squeezed in recent quarters owing to intense competition among multiple brands.

“Eyecare business has reached a critical mass and benefits of cost restructuring will start being reflected from FY25 itself,” the brokerage firm said.

According to the report, performance of Titan is expected to remain tepid in the first half of current financial year due to higher gold prices and weak marriage season. However, a strong recovery is likely to be in the second half of this fiscal year.

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