Macquarie picks this Tata group company in consumer space; sees potential upside of 30%

Titan share price, Titan target price: Tata Group's watch-to-jewellery major Titan has been chosen as the preferred pick in the consumer space by global brokerage Macquarie. The brokerage has continued with its 'outperform' call on the stock with the target reduced to Rs 4,000 from Rs 4,150 per share.

The slashed target still implies a potential upside of 30 per cent over the previous close. In the previous session, the stock closed a tad higher by 0.26 per cent at R 3,082.55 per share on the BSE.

The brokerage pointed out that amid a rise in gold lease cost or rate for smaller players in the space, Titan's competitiveness seems to be rising. Gold leasing cost or rate is the interest rate charged when a concern is borrowing gold. It is similar to an interest rate charged on any other loan.

Also, it underscored that the concern around lab-grown diamonds is not very significant.

Macquarie slashed FY25-27 earning per share (EPS) estimate by 3-4 per cent on the back of higher lease costs (Trump's tariff) as well as near-term impact on jewellery demand given the higher gold prices.

Ttian's Q3FY25 results

For the December quarter, the company's net profit declined 5 per cent on-year to Rs 990 crore. However, revenue from operations jumped 24.32 per cent year on year (YoY) to Rs 16,053 crore in the quarter ended 31 December 2024. Total income (excluding bullion sale) for the quarter stood at Rs 13,071 crore, registering a growth of 24.2 per cent on YoY basis.

Titan share price performance 

Titan shares have underperformed with a negative return of over 18 per cent in the last one year, while in a 3-year period it has gained just 20 per cent.