Buy Titan shares, price target Rs 2,800: ICICI Securities

Titan Share Price: ICICI Securities is bullish on Titan as it believes that Tanishq has effectively fine-tuned the success template in Chennai and one of the famous states for gold markets, Tamil Nadu, which is a replicable template in other southern states. 

It said that Tanishq has been able to meaningfully sharpen its competitive edge by becoming aggressive on price and inventory offering compared to top regional competition. This has helped it improve business in terms of customer footfalls and revenue.

The report noted that South has always been a competitive market for Tanishq due to highly competitive dominant organised jewellers and relatively weak regional offerings by Tanishq.

ICICI Securities has said that this is one company where the capabilities to translate the opportunity to earnings is high. 

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Titan Share Price Target NSE 2023

ICICI Securities has maintained Buy rating on Titan for a price target of Rs 2,800.

The report added that key risks for Titan could be sustained weakness or worsening of the macro environment can lead to some slowdown, which has not been factored. 

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According to ICICI Securities Tanishq’s five-point strategy for outperformance in Tamil Nadu:

1. Winning customers by matching gold rate with competition. In the Chennai market, Tanishq matches gold rates with top competitors such as VBJ, GRT, Malabar.

2. No deduction on gold exchange bought from any jeweller. Tanishq is offering 100 per cent exchange value on gold above 22 karats bought from any jeweller to its customers at its stores. This is at par with top competitive benchmarks in the respective regional market.  

3. Standardised making charges: Tanishq has become more competitive with regards to making charges, starting at 8 per cent vs 6 per cent compared to regional players (VBJ, GRT, Malabar, Lalithaa etc).  

4. 2x in-store inventory. According to the report, Tanishq has meaningfully improved overall inventory offering, at store level the company has increased to 2x to 20kg (vs 10 kg earlier).

5. Roped in Nayanthara as brand ambassador

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