Analyst Estimates: Here's What Brokers Think Of Titan Company Limited (NSE:TITAN) After Its Yearly Report

Titan Company Limited (NSE:TITAN) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Titan beat revenue expectations by 4.7%, at ₹511b. Statutory earnings per share (EPS) came in at ₹39.38, some 2.8% short of analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Titan

After the latest results, the eleven analysts covering Titan are now predicting revenues of ₹547.5b in 2025. If met, this would reflect a modest 7.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 19% to ₹46.91. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹571.1b and earnings per share (EPS) of ₹51.95 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the ₹3,863 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Titan analyst has a price target of ₹4,545 per share, while the most pessimistic values it at ₹2,749. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Titan's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.2% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Titan.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Titan. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at ₹3,863, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Titan. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Titan going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Titan (1 is a bit unpleasant!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.