Revenue Beat: Titan Company Limited Beat Analyst Estimates By 6.8%

Titan Company Limited (NSE:TITAN) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a pretty mixed result, with revenues beating expectations to hit ₹133b. Statutory earnings fell 3.7% short of analyst forecasts, reaching ₹8.06 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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

Taking into account the latest results, the most recent consensus for Titan from eleven analysts is for revenues of ₹544.1b in 2025. If met, it would imply a reasonable 3.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 11% to ₹43.07. Before this earnings report, the analysts had been forecasting revenues of ₹574.5b and earnings per share (EPS) of ₹46.98 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of ₹3,689, suggesting the downgrades are not expected to have a long-term impact on Titan's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Titan analyst has a price target of ₹4,499 per share, while the most pessimistic values it at ₹2,818. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Titan shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Titan's past performance and to peers in the same industry. We would highlight that Titan's revenue growth is expected to slow, with the forecast 5.0% annualised growth rate until the end of 2025 being well below the historical 23% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. Factoring in the forecast slowdown in growth, it seems obvious that Titan is also expected to grow slower than other industry participants.

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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Titan analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Titan (1 shouldn't be ignored!) that we have uncovered.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com