The Titan Company Limited (NSE:TITAN) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

As you might know, Titan Company Limited (NSE:TITAN) just kicked off its latest quarterly results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 4.5% to hit ₹177b. Statutory earnings per share (EPS) came in at ₹11.80, some 2.3% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Titan after the latest results.

View our latest analysis for Titan

Taking into account the latest results, the consensus forecast from Titan's 13 analysts is for revenues of ₹640.1b in 2026. This reflects a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 53% to ₹55.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹674.9b and earnings per share (EPS) of ₹54.73 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The average price target was steady at ₹3,734even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Titan at ₹4,400 per share, while the most bearish prices it at ₹2,833. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Titan's revenue growth is expected to slow, with the forecast 8.2% annualised growth rate until the end of 2026 being well below the historical 24% 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. 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 most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Titan going out to 2027, and you can see them free on our platform here.

Even so, be aware that Titan is showing 2 warning signs in our investment analysis , and 1 of those is significant...

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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.