ICICI Securities has reiterated a BUY call on Titan Company with a revised target price of Rs 4,715, citing the company’s strategic entry into lab-grown diamonds (LGD) as a calculated expansion rather than a disruption to its core jewellery franchise. The launch of the ‘beYon’ brand signals Titan’s intent to tap into emerging lifestyle-driven consumption, particularly among Gen Z and working women, while preserving the premium positioning of natural diamonds. With jewellery demand remaining structurally strong and studded jewellery gaining share, ICICI Securities expects Titan to deliver robust revenue and profit growth through FY28, supported by brand trust, scale, and disciplined execution.

ICICI Securities Reaffirms BUY on Titan With Rs 4,715 Target

ICICI Securities has maintained its BUY recommendation on Titan Company Ltd, assigning a 12-month target price of Rs 4,715, which implies an upside of 18% from the current market price of Rs 3,982. The brokerage values the stock at 60x FY28E earnings, reflecting Titan’s leadership position in organised jewellery, superior return ratios, and sustained earnings visibility across cycles.

The recommendation is underpinned by expectations of strong revenue and profit growth, even as the company selectively experiments with new categories such as lab-grown diamonds.

beYon Brand Marks Titan’s Foray Into Lab-Grown Diamonds

• Strategic entry into a new lifestyle segment.
Titan has launched ‘beYon’, its first exclusive brand focused on lab-grown diamonds, with the inaugural store opening in Mumbai on December 29, 2025. The format is designed to address lifestyle needs beyond traditional jewellery, including watches, perfumes, sarees, handbags, and curated LGD jewellery.

• Controlled rollout strategy.
The company plans to add a few more beYon stores in Mumbai and Delhi initially, indicating a cautious, data-driven approach rather than an aggressive national rollout.

• Brand trust as a key differentiator.
ICICI Securities notes that Titan’s entry lends credibility to the LGD category, which currently accounts for less than 1% of total jewellery sales in India.

LGD Versus Natural Diamonds: A Clear Price and Use-Case Divide

• Significant price differential.
Lab-grown diamonds are priced 70–80% lower than natural diamonds on a per-carat basis. A 1.04-carat LGD ring in 18KT gold costs approximately Rs 89,300, compared with Rs 2,85,500 for a similar natural diamond ring, depending on cut and stone configuration.

• Distinct consumer motivations.
LGD jewellery is positioned as an affordable, everyday, or gifting option, while natural diamonds continue to dominate high-value discretionary purchases.

• Limited cannibalisation risk.
Channel checks conducted by ICICI Securities suggest minimal risk of consumers switching from natural diamonds to LGD in the near to medium term.

Target Customers: Gen Z and Working Women Drive the Thesis

• Demographic tailwinds remain strong.
Gen Z accounts for nearly 53% of India’s population, while over 30% of India’s female population is part of the working workforce—two cohorts that value affordability, design, and lifestyle relevance.

• LGD fills an unmet aspiration gap.
For consumers seeking at least one diamond jewellery piece without the premium pricing of natural stones, LGD provides a compelling value proposition.

• Natural diamonds retain aspirational dominance.
Higher-income consumers are expected to continue preferring natural diamonds for weddings and investment-driven purchases, preserving Titan’s core revenue base.

Jewellery Mix Evolution Supports Long-Term Growth

• Studded jewellery continues to outperform.
Studded jewellery currently accounts for 23% of Titan’s jewellery sales and is growing at a strong double-digit pace.

• LGD adds an incremental growth lever.
ICICI Securities views LGD not as a replacement but as an incremental driver that can gradually improve the studded jewellery mix over time.

• Brand architecture remains intact.
The Tanishq brand will continue to anchor natural diamond and gold jewellery, while beYon operates as a parallel lifestyle-focused offering.

Financial Growth Outlook Remains Robust

ICICI Securities expects revenue and PAT to grow at a CAGR of 18% and 23%, respectively, between FY25 and FY28.

Balance Sheet Strength and Returns Remain Best-in-Class

• Strong return ratios.
Titan’s RoE is expected to remain above 30% through FY28, while RoCE is projected to improve to 34.5%, underscoring efficient capital deployment.

• Healthy cash generation.
Free cash flow is forecast to rise steadily, supported by operating leverage and disciplined working capital management.

• Debt metrics improve steadily.
Debt-to-equity is expected to decline to 0.2x by FY28, enhancing financial flexibility.

Stock Levels and Investment Strategy

• Current Market Price (CMP): Rs 3,982
• Rating: BUY
• Target Price: Rs 4,715
• Upside Potential: ~18%
• Investment Horizon: 12 months

Key Technical Levels:

Immediate support: Rs 3,750

Strong accumulation zone: Rs 3,600–3,650

Near-term resistance: Rs 4,200

Breakout confirmation: Above Rs 4,300

Medium-term investor target: Rs 4,715

Key Risks to Monitor

• Sustained inflation in gold prices.
Sharp increases in gold prices could dampen jewellery demand in the near term.

• Discretionary consumption slowdown.
Any macroeconomic stress impacting consumer spending could affect growth.

• Changes in gold import duties.
An increase in customs duty on gold may pressure margins or demand elasticity.

Bottomline: Innovation Without Diluting the Core

Titan’s entry into lab-grown diamonds represents strategic curiosity rather than strategic desperation. By carefully ring-fencing LGD under the beYon brand, the company protects the aspirational value of natural diamonds while experimenting with a fast-evolving lifestyle segment. ICICI Securities’ BUY call reflects confidence in Titan’s ability to innovate without compromising profitability. With brand trust, demographic tailwinds, and superior execution, Titan remains well positioned to deliver sustained shareholder value over the medium to long term.