Titan Share Price Target at Rs 3,830: Prabhudas Lilladher Research
Equity research major Prabhudas Lilladher has suggested BUY Call for Titan Company in its latest research report. The recommendation pins the current market price near Rs3,451 and outlines a forward-looking target of Rs3,830 for the stock, emphasizing the strategic value—yet initial earnings headwinds—of Titan’s recent Damas acquisition.
Long Term Titan Stock Outlook
Prabhudas Lilladher’s July 27, 2025, report casts Titan’s Damas acquisition as a high-stakes regional thrust. The firm will pay an enterprise value of AED1,038mn (about Rs24.38bn) for a 67% stake in Damas, the Middle East’s premier jeweler. Although the integration will be initially earnings-dilutive, Damas’ transformation under Titan is projected to drive margin expansion and enhanced operational leverage, rendering the acquisition EPS-accretive by CY28. The recommendation is to buy into Titan with a price target of Rs3,830, given the underlying strengths in its domestic and emerging international franchises.
Titan–Damas Deal: Strategic Move Beyond Indian Shores
Titan is making a pivotal foray into the GCC market via its stake in Damas, pushing its jewelry portfolio to a truly international scale.
- Titan, through subsidiary Titan Holdings International FZCO, will acquire 67% of Damas LLC for Rs12-13bn, financed predominantly by debt at 6% interest.
- The transaction values Damas at approximately AED1,038mn, with an option to purchase the remaining 33% stake post-3QFY30.
- This expansion targets the USD15bn GCC jewelry market, positioning Titan to consolidate presence alongside Damas, Tanishq, and Gaia brands.
Financial Performance and Valuation Metrics
The numbers highlight Titan’s robust growth runway and steady returns, augmented but not immediately lifted by Damas.
| Metric | FY24 | FY25 | FY26E | FY27E |
|---|---|---|---|---|
| Sales (Rs bn) | 471 | 548 | 649 | 752 |
| EBITDA (Rs bn) | 50 | 53 | 71 | 84 |
| EPS (Rs) | 39.8 | 37.5 | 50.0 | 60.7 |
| RoE (%) | 26.8 | 21.3 | 24.5 | 25.1 |
| P/E (x) | 86.7 | 92.1 | 69.0 | 56.9 |
Damas: Opportunity but EPS Accretion Only from CY28
While the Damas acquisition adds scale and brand leverage, it will initially pressurize Titan’s bottom line.
- Damas has 146 stores across the UAE, Saudi Arabia, Qatar, Bahrain, and Kuwait, giving Titan a rich GCC footprint.
- Key restructuring in 2025 involves closing underperforming gold-focused stores and converting many into Tanishq outlets. Notably, Graff stores (which form 20% of Damas’ sales) are excluded from this transaction.
- The acquisition is set to be EPS-dilutive in CY26, neutral in CY27, and only EPS-accretive by CY28 as operational synergies and product re-mix kick in.
Damas Turnaround: Margin Expansion at Play
Damas’ earnings turnaround fortifies Titan’s case for long-term value despite initial drag on EPS.
- Damas reported a revenue CAGR of 12% (CY20-24), swinging from a Rs1.93bn loss to a Rs184mn profit in CY24, driven by a more profitable signature jewelry mix and robust margin expansion (EBITDA margin up to 10.5% by CY24).
- Titan expects to leverage its own strengths in sourcing, inventory, and backend efficiencies to further improve Damas’ margins and profitability.
- UAE has a 60% organized jewelry market, and Saudi Arabia about 30-40%, offering Titan space to capture market share via upgraded operations and branding.
Stock Levels and Investor Roadmap
Prabhudas Lilladher’s investment thesis prizes Titan’s resilience and scalable platform, but cautions that the Damas deal is a long-haul play.
- Current Market Price (as of report): Rs3,451
- Target Price: Rs3,830
- 52-Week High/Low: Rs3,867 / Rs2,925
- Market Cap: Rs3,064bn (approx. $35.4bn)
- Recommendation: BUY—remains unchanged despite near-term earnings pressure from integration costs
Key Financial Ratios and Balance Sheet Outlook
Titan stands out for sturdy returns, manageable debt, and consistent payout ratios, supporting a sustained upward trajectory.
| Year | DPS (Rs) | Dividend Yield (%) | Net Debt to Equity (x) | FCF (Rs) |
|---|---|---|---|---|
| FY24 | 10.0 | 0.3 | 0.4 | 20.0 |
| FY25 | 11.0 | 0.3 | 0.7 | -1.1 |
| FY26E | 13.0 | 0.4 | 0.7 | 29.6 |
| FY27E | 16.0 | 0.5 | 0.5 | 37.4 |
Shareholders benefit from rising dividend per share and robust free cash generation, even as net leverage temporarily ticks up during expansion.
Bottom Line for Investors
Prabhudas Lilladher’s conviction in Titan is underpinned by the brand’s commanding leadership, diversification drive, and demonstrated operational prowess. While the Damas acquisition grounds future growth in international markets, investors should brace for an EPS headwind until 2028. The BUY call signals confidence in management’s ability to drive a step-change in profitability and market reach by blending tried-and-true domestic execution with a newly internationalized platform. For those with a medium- to long-term horizon, Titan’s compelling narrative and financial discipline remain unmatched in the consumer discretionary space.
