Target: ₹3,600

CMP: ₹3,469.75

Jewellery/Watches/Eyecare/Emerging Business/Caratlane posted 26/15/18/5/25 per cent y-o-y sales growth in Q3-FY25F respectively. Standalone sales were up 24 per cent y-o-y in Q3-FY25.

Festive demand for jewellery business remained healthy, with high single digit new buyer growth. Plan gold grew 24 per cent y-o-y while coin sales were up 48 per cent y-o-y. Studded range grew 21 per cent y-o-y and secondary sales were up 22 per cent.

Tanishq added two new international stores (1 each in Seattle, US and Gold Souk, Dubai). 11 new Tanishq stores were added in India and 13 were added under Mia.

Caratlane grew 25 per cent y-o-y driven by 26 per cent growth in studded portfolio. New buyer growth/LFL growth was 8/16 per cent y-o-y respectively.

We expect a consolidated/standalone sales growth of 23 per cent/24 per cent y-o-y in Q3-FY25F led by healthy festive demand for jewellery and better growth from watches and eyecare segments. Margin pressure is expected to sustain owing to elevated gold prices and volatility in diamond prices.

We expect EBITDA margin contraction of 105bp yoy to 10 per cent in Q3. We have an Add rating on Titan with a TP of ₹3,600.