TITAN

June 27 (Reuters) - Titan Company Ltd TITN.NS:

• TITAN CO - REMAINS CONFIDENT IN LONG-TERM GROWTH TRAJECTORY OF BUSINESSES FOR FY 2025-26

• TITAN CO - GLOBAL MACROECONOMIC UNCERTAINTIES AND GEOPOLITICAL TENSIONS MAY PERSIST FOR FY 2025-26

Source text: ID:nBSE24LGFy

Further company coverage: TITN.NS

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By Praveen Paramasivam

June 9 (Reuters) - Titan Company's TITN.NS CaratLane aims to surpass last financial year's revenue growth, as younger Indians warm up to lower-carat jewellery and the brand plans to open more stores, its top boss told Reuters.

Brands selling lower-carat jewellery, including CaratLane and Kalyan Jewellers' KALN.NS Candere, are rapidly expanding as younger Indians increasingly buy such pieces for adornment in a country that traditionally views jewellery as an investment.

Around Valentine's Day this year, CaratLane launched 9-carat jewellery in a country that mainly buys 22-carat gold.

Candere plans to open 80 stores in India in the year that started April 1, matching the number of higher-priced Kalyan locations planned for the same period, while larger-sized CaratLane aims to open more than 40 outlets, mostly in smaller cities.

As of end-March, CaratLane had 322 stores, making it the second-largest jewellery brand by store count within the Tata Group. The brand contributes about 6% to Titan's overall revenue.

"Overall growth (in fiscal 2026) ... will be no less than what we have done last year," CaratLane Managing Director Saumen Bhaumik said in an interview after market hours on Friday.

In the year ended March 31, CaratLane's topline jumped 24% to 35.83 billion rupees ($418.96 million), with earnings before interest and taxes at 2.96 billion rupees, helping the brand record its best year.

Profit for the nascent financial year "is going to be significantly better", Bhaumik said.

In recent months, while soaring gold prices have led many Indians to opt for lightweight, lower-carat jewellery to stay within budget, Bhaumik said CaratLane's average bill value has still inched up by a tenth, aided by new launches.

CaratLane plans to open a second U.S. store in Dallas by the festival of Deepavali this year and two Dubai outlets within eight months.

($1 = 85.5210 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Rashmi Aich)

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May 9 (Reuters) - ** Indian watchmaker and jeweler Titan TITN.NS posted higher fourth-quarter profit on Thursday, led by strong demand for premium jewellery and gold coins

** Stock jumped 4.1% to 3,507 rupees and was top gainer on benchmark Nifty 50 .NSEI which was trading 0.9% lower

A GOOD OUTCOME

** Jefferies ("hold", PT: 3,340.30 rupees) called TITN's results a "good outcome," adding that buyer growth was strong for products in the higher price band

** Goldman Sachs ("buy", PT: 4,100 rupees) says TITN is responding to consumer behavior in the face of steep gold inflation

** Macquarie ("outperform", PT: 4,000 rupees) says TITN's 11.9% margin delivery in jewelry business is an "affirmation" of its ability to balance headwinds in the segment

** Brokerage adds that it liked TITN's increased confidence on sales of studded jewelry which were buoyed by growth in number of buyers

(Reporting by Kashish Tandon in Bengaluru)

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May 8 (Reuters) - Titan Company Ltd TITN.NS:

• Q4 CONSOL PROFIT 8.71 BILLION RUPEES; IBES EST. 12.20 BILLION RUPEES

• DIVIDEND 11 RUPEES PER SHARE

• Q4 CONSOL SALE OF PRODUCTS 138.97 BLN RUPEES

Further company coverage: TITN.NS

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By Rajendra Jadhav

MUMBAI, April 30 (Reuters) - Gold demand remained lower than normal on Wednesday during an Indian festival when buying gold is considered auspicious as the rally in prices to a record high prompted retail consumers to reduce purchases.

Indians were celebrating Akshaya Tritiya, the second-biggest gold-buying festival after Dhanteras.

"Footfalls in jewellery stores improved from evening but still in volume terms demand was around 15% lower than normal," Surendra Mehta, secretary at the India Bullion and Jewellers Association (IBJA).

Big retail chains, which were offering discounts on jewellery making charges, were doing comparatively better business than single-store retailers, as near-record high prices stretched consumers' budgets, Mehta said.

Domestic gold prices MAUc1 hit a record high of 99,358 rupees per 10 grams this month and were around 95,000 rupees on Wednesday, nearly 30% higher since the last Akshaya Tritiya festival.

Despite record-high gold prices, positive consumer sentiment persists, with many exchanging old jewellery for new to manage budgets for festivals and weddings, said Saurabh Gadgil, chairman of PNG Jewellers PNGD.NS.

Indian dealers on Wednesday offered a discount XAU-IN-PREM up to $20 an ounce over official domestic prices, inclusive of 6% import and 3% sales levies.

Gold demand during Akshaya Tritiya was likely lower in volume but could be the same or slightly higher in value, said Sachin Jain, CEO of the World Gold Council's Indian operations.

Big and small retailers were offering discounts on jewellery making charges to lure retail buyers. However, many still preferred to buy coins and bars for investment purposes, said a Hyderabad-based jeweller.

"Demand was lower than usual, but still better than what the industry expected. Even with record-high prices, retail buying didn't take a big hit," said IBJA's Mehta.

(Reporting by Rajendra Jadhav, editing by Ed Osmond)

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April 8 (Reuters) - Shares of Indian jeweller and watchmaker Titan Company TITN.NS rose about 5% on Tuesday, set for their best day since July 2024, after the company said it expects a 25% rise in its fourth-quarter standalone revenue.

The revenue growth, higher than the same period a year ago, was propelled by a record rally in gold prices, as investors fled to safety amid high geopolitical tensions and escalating economic uncertainty due to U.S. tariff policy.

The company's jewellery business accounts for a majority of the overall revenue. The rise in revenues in the January-to-March quarter was led by "high double-digit growth" in higher price band jewellery, said the company.

Higher gold prices did not deter affluent Indians from splurging on ornaments for weddings and accumulating gold as a form of investment.

The shares rose to 3,185.75 rupees in Mumbai as of 9:30 a.m. IST. The benchmark Nifty 50 index .NSEI was up 1.7%.

Analysts rate Titan 'buy' on average, according to data compiled by LSEG, similar to peers.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Mrigank Dhaniwala)

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April 7 (Reuters) - Indian jeweller and watchmaker Titan Company TITN.NS said on Monday it expects a 25% increase in its fourth-quarter revenue, reflecting a faster growth rate compared to the same period a year earlier, helped by rallying gold prices.

The price of gold has risen about 15% this year, driven by escalating geopolitical tensions and uncertainties over U.S. tariff policy, as it is seen as a hedge against such risks. GOL/

Higher gold prices have not deterred affluent Indians from splurging on ornaments for weddings and accumulating gold as a form of investment, even as the middle class has reined in spending on discretionary items.

Sales at Titan's jewellery business, which accounts for about 90% of its total revenue, was led by plain gold jewellery and coins, reflecting strong consumer preference for the precious metal, the company said in a regulatory filing.

The business, with brands such as Tanishq and CaratLane, is expected to have grown 25% year-on-year in the quarter ended March 31, with sales of plain gold jewellery rising 27% and gold coins climbing 65%.

Last year, Titan's revenue grew 17% in the fourth quarter, while the company saw a 19% increase in its domestic jewellery operations.

Its watches segment, which accounts for 7% of the company's total revenue and sells products of brands like Fastrack and Sonata, is estimated to have risen by 22%.

(Reporting by Shivani Tanna in Bengaluru; Editing by Vijay Kishore)

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** Brokerage Macquarie calls Titan TITN.NS its preferred pick in Indian consumer space

** TITN down 1.7% on the day amid weak broader markets .BO

** U.S. President Donald Trump's tariff plans have spurred demand for physical gold in U.S. and have resulted in higher gold lease costs - Macquarie

** TITN to have a competitive edge as gold lease costs lower for co vs smaller rivals, says Macquarie

** Adds, brokerage "gains comfort" in TITN's willingness to enter the lab-grown diamonds space once adoption picks up

** Avg rating on TITN at "buy", median PT at 3,854.50 rupees - data compiled by LSEG

** Stock down 7% YTD vs benchmark Nifty 50's .NSEI 6.7% decline

(Reporting by Kashish Tandon in Bengaluru)

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By Praveen Paramasivam

Feb 25 (Reuters) - Titan TITN.NS forecast revenue growth of up to 20% for its mainstay jewellery business in the next financial year, driven by demand from affluent Indians, but flagged risks to margins from rallying gold prices.

Higher gold prices have not deterred affluent Indians from splurging on ornaments for weddings and accumulating gold as a form of investment, even as the middle class has reined in spending on discretionary items.

Titan's jewellery business, accounting for nearly 90% of its total revenue, would grow in the mid-teen percentage range to 20% in the year beginning April 1, the group's Chief Financial Officer Ashok Sonthalia told Reuters on Monday.

The segment posted a 20.2% growth last year and 20.4% in the nine months ended December 31.

Titan gets a bulk of its revenue from affluent Indians, whose purchasing power and inclination to indulge is largely unaffected by inflation and higher interest rates, Sonthalia said.

However, a rally in benchmark gold prices XAU= is posing a threat to Titan's plans to achieve its core earnings margin forecast of between 11% and 11.5%.

"If gold prices keep going up like this (and) it doesn't normalize ... 11%-11.5% may be difficult," Sonthalia said.

Spot gold rose about 27% in 2024 and looks set for a record-breaking 2025 as heightened economic uncertainty and inflation concern under U.S. President Donald Trump's second term boost demand.

Titan had said earlier that surging prices of gold were prompting more customers to buy coins - which are less profitable for Titan - as a form of investment.

In the quarter ended December 31, core earnings margin in its jewellery business shrank 100 basis points to 11.2%.

For the broader group, Sonthalia forecast current-quarter revenue growth in the double-digit percentage range.

($1 = 86.7550 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Eileen Soreng)

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By Rajendra Jadhav

MUMBAI, Feb 11 (Reuters) - Gold leasing rates in India have doubled within a month to a record high, following the overseas market, where rates jumped due to a supply crunch as global banks divert the precious metal to the United States, industry officials told Reuters.

Higher leasing rates are driving up jewellery production costs in the world's second-largest gold consumer and could squeeze margins of jewellers such as Titan TITN.NS, Kalyan Jewellers KALN.NS, and Tribhovandas Bhimji Zaveri TBZL.NS.

Gold leasing rates, which traditionally hover around 1.5% to 3%, have more than doubled in a month and could rise further, Shekhar Bhandari, president and business head of Kotak Mahindra Bank KTKM.NS told Reuters.

"Given the geopolitical uncertainty, trade war, and benefit arising out of higher futures prices on CME as compared to spot, it seems leasing rates will remain elevated for the next few months," he said.

Global bullion banks are flying gold into the United States from London, Switzerland, and Asian hubs such as Dubai and Hong Kong to capitalise on the unusually high premium of U.S. gold futures GCcv1 over spot prices XAU=, Reuters has reported.

The rush to move gold to the United States has lifted gold leasing rates in London, the world's key over-the-counter (OTC) market.

Banks in import-dependent India borrow gold from overseas banks and lend to jewellers. Rising borrowing costs have proportionally increased leasing rates in India, Bhandari said.

"Jewellers were caught off-guard by the leasing rate shooting up to a record high," said Amit Modak, chief executive of PN Gadgil and Sons, a jeweller based in the western city of Pune. "Now they're clueless about how to handle it."

Bullion-supplying banks were not bringing gold into India in recent weeks since the market is in discount, while deliveries on COMEX fetch premium, a Mumbai-based dealer with a bullion importing bank said.

The premium on COMEX futures over spot prices widened again to about $28 per ounce on Monday, compared with discounts as high as $24 in India.

Vaults in key Indian cities storing gold imported by bullion banks are nearly empty, as banks have moved gold to the United States and are not interested in bringing it to India given the discounts, said another Mumbai-based dealer with a bank.

"Indian discounts could have risen above $100 due to negligible demand. But a supply crunch is keeping them from sky-rocketing," he said.

(Reporting by Rajendra Jadhav; Additional reporting by Siddhi Nayak; Editing by Clarence Fernandez)

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Feb 5 (Reuters) - Titan Company Ltd TITN.NS:

• TITAN EXEC: DIFFICULT TO PREDICT Q4 GROWTH DUE TO GOLD PRICE VOLATILITY

• TITAN EXEC: HOPE TO SUSTAIN SOME GROWTH SEEN DURING Q2, Q3

• TITAN EXEC: ON LONGER-TERM BASIS VERY CONFIDENT OF GROWTH

• TITAN EXEC: BECOMING A CHALLENGE TO PREDICT GOLD PRICES

• TITAN EXEC: SEEING GOOD TRACTION IN STUDDED GOLD SALES

• TITAN EXEC: PUSHING FOR HIGHER GROWTH IN CUSTOMER TICKET SIZE

• TITAN EXEC: SEE GOLD ON LEASE RATES GOING UP

• TITAN EXEC: WILL GET DUE SHARE OF CONSUMPTION BOOST FROM CHANGE IN INCOME TAX SLABS

Source text: [ID:]

Further company coverage: TITN.NS

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Feb 4 (Reuters) - Indian jeweller and watchmaker Titan TITN.NS topped third-quarter profit estimates on Tuesday, as customers splurged on ornaments during the festive season.

The company reported a profit of 10.47 billion rupees ($120.23 million) in the quarter ended Dec. 31, marginally lower from a year ago.

Analysts, on average, had expected a profit of 9.86 billion rupees, according to data compiled by LSEG.

($1 = 87.0800 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Varun H K)

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** Shares of Titan Co TITN.NS rise 2.3% to 3,549 rupees, their highest point in three months

** Stock among top gainers on Nifty 50 index .NSEI, which is up 0.42%

** TITN released its quarterly update on Monday, and shares rose 2% before closing 0.5% higher

** Co said it expects a 24% rise in Q3 rev, buoyed by domestic festive demand for jewellery

** Optimistic about TITN's rev growth over long term, given its ability to gain market share across geographies, Antique Stock Broking analysts say

** Expects co to deliver sales growth of 19% over FY24–27

** Margins may remain weak, but co's pursuit for rev growth to work in stocks favor, Morgan Stanley analysts say, and maintained an "equal-weight" rating

(Reporting by Ashna Teresa Britto in Bengaluru)

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Jan 6 (Reuters) - Titan Company Ltd TITN.NS:

• REPORTS 24% YOY GROWTH IN SALES IN Q3

• DOMESTIC JEWELLERY SALES GREW 25% YOY IN Q3

• DOMESTIC WATCHES & WEARABLES SALES GREW 13% YOY IN Q3

• DOMESTIC EYECARE SALES GREW 17% YOY IN Q3

• CARATLANE SALES GREW 25% YOY IN Q3

Source text: ID:nBSE9Ssrys

Further company coverage: TITN.NS

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** Titan Company TITN.NS drops 0.5%, extending yearly loss to 11.9%; set to snap seven straight years of gains

** Stock set for fifth straight session of losses; among worst performers on Nifty 50 index .NSEI, which is up 8.6% YTD

** Tata group-owned co's Q1 sales impacted by higher gold prices

** Q2 margins impacted by custom duty cut on gold as TITN already had inventory purchased before the cut in import taxes

** Stock rated "buy" on avg; median PT is 3,600 rupees - LSEG

(Reporting by Ashish Chandra in Bengaluru)

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By Rajendra Jadhav and Rahul Paswan

MUMBAI, Dec 18 (Reuters) - Soaring gold prices have led many Indian families to opt for lightweight and lower-carat jewellery to stay within their budgets, industry officials said.

"I wanted to gift my daughter 80 grams of gold, but I was forced to scale it down to 50 grams because of price increase in the past two years," said Mumbai-based Shubhangi More, choosing a necklace with a traditional design for her daughter's wedding.

Gold prices MAUc1 in the world's second biggest buyer of the precious metal have surged 22% so far this year, after rising 15% in 2023.

Most Indian buyers prefer traditional jewellery, but now they want it crafted in lightweight designs to fit their budgets, said Bachhraj Bamalwa, partner at jewellery retailer Nemichand Bamalwa & Sons.

"Recognising this preference, we are stocking more lightweight jewellery sets while scaling down our inventory of heavier designs," Bamalwa said.

Advances in manufacturing technology have enabled jewellery makers to craft traditional designs in lighter weights, said Sachin Jain, CEO of the World Gold Council's Indian operations.

Buyers are also switching to lower carat jewellery to reduce costs, jewellers said.

Guddi Devi, a teacher from Jamalpur in the northern state of Bihar, bought 18-carat jewellery for her daughter's wedding instead of 22-carat.

"I preferred the 18 carats of jewellery because it was cheaper compared to the 22 carats and is much stronger than it," she said.

Indians traditionally prefer jewellery made in 22-carat gold, which contains 91.7% pure gold, while 18-carat gold contains 75% pure gold and 25% other metals. The price of 18-carat gold is nearly a fifth lower than that of 22-carat gold.

"Lower prices and greater durability are making 18-carat jewellery increasingly popular. Its share in total sales has risen to over 15%, compared to just 5% to 7% two years ago," said Surendra Mehta, secretary at the India Bullion and Jewellers Association.

(Reporting by Rajendra Jadhav and Rahul Paswan. Editing by Mark Potter)

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Dec 9 (Reuters) - Elpro International Ltd ELPR.BO:

• ELPRO INTERNATIONAL LTD - ACQUIRED EQUITY SHARES OF TITAN CO

• ELPRO INTERNATIONAL LTD - COST OF ACQUISITION AT 100 MILLION RUPEES

Source text: ID:nBSEbnfvH7

Further company coverage: ELPR.BO

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Nov 19 (Reuters) - Elpro International Ltd ELPR.BO:

• HAS ACQUIRED EQUITY SHARES OF TITAN CO FOR UP TO 100.1 MILLION RUPEES

Source text: ID:nBSE1kX1HP

Further company coverage: ELPR.BO

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Nov 11 (Reuters) - Ashapuri Gold Ornament Ltd ASHD.BO:

• ENTERED INTO AGREEMENT FOR SUPPLY OF GOLD JEWELLERY TO TITAN COMPANY

Source text: ID:nBSE9xb2Kb

Further company coverage: ASHD.BO

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** Shares of Titan Company TITN.NS fall as much as 3.6% to 3,114 rupees, their lowest levels since June 4

** The jewellery and watch manufacturer reported a 23% Y/Y fall in Q2 profit on Tuesday

** Brokerage Jefferies says the impact of custom duty cut while benefited the jewellery growth, weighed negatively on TITN's reported margins

** More than 1.2 mln shares change hands, 1.2x of 30-day avg

** At least 13 of 29 analysts have cut their PT since results on Wednesday; two have raised their targets - LSEG

** Median PT now 3,650 rupees, down 3.4% from Oct

** TITN stock fell 14.6% in Oct, snapping four straight monthly gains

** Stock last down 3%, taking YTD loss to 14.8%

(Reporting by Ashish Chandra in Bengaluru)

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Nov 5 (Reuters) - Indian jeweller and watchmaker Titan TITN.NS reported a smaller-than-expected second-quarter profit on Tuesday, hurt by weak demand in its studded jewellery business.

The Tata group company posted a consolidated profit of 7.04 billion rupees ($83.74 million) in the quarter ended Sept. 30, compared to 9.15 billion rupees a year ago.

Analysts' on average expected 9.47 billion rupees, according to data compiled by LSEG.

($1 = 84.0710 Indian rupees)

(Reporting by Ashna Teresa Britto; Editing by Abinaya Vijayaraghavan)

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Repeats story that ran on Tuesday, with no changes

By Rajendra Jadhav

MUMBAI, Oct 29 (Reuters) - Indian buyers of gold brushed off record high prices and made purchases for the Dhanteras and Diwali festivals starting on Tuesday, hoping bullion would continue to rally and deliver promising returns amid a cooling stock market, industry officials told Reuters.

Robust demand in the world's second-biggest gold consumer could further support global prices XAU=, which hit record highs last week. Rising demand for imports of gold could also widen India's trade deficit and put pressure on the rupee INR=IN.

"People are still into gold big time, even with prices at record highs during Dhanteras. With gold giving better returns than the stock market, there's been solid demand for coins and bars," said Saurabh Gadgil, chairman of PNG Jewellers PNGD.NS.

Indians were celebrating Dhanteras on Tuesday, a day considered auspicious for buying gold and one of the busiest gold-buying days in India.

Local gold prices MAUc1 jumped to a record high of 78,919 rupees per 10 grams last week, marking an increase of more than 31% since last year's Diwali. India's NSE Nifty 50 share index has dropped about 7% from a record high hit on Sept. 27.

Investors are working to diversify their portfolios by adding to or increasing their allocations in gold and silver, Gadgil said.

"In value terms, turnover during this year's Dhanteras is expected to be significantly higher than last year due to higher prices. In volume terms, it may be slightly lower or around the same level as last year," Prithviraj Kothari, president of the India Bullion and Jewellers Association (IBJA), said.

Indian dealers on Tuesday charged a premium XAU-IN-PREM of up to $1 an ounce over official domestic prices – inclusive of 6% import and 3% sales levies, up from the last week’s discount of $4.

Local silver futures MSVc1 hit a record high of 100,081 rupees per kilogram last week.

"Demand for silver coins and bars was strong today, as silver has delivered better returns than gold in recent months," said Chirag Thakkar, CEO of Amrapali Group Gujarat, a leading silver importer.

(Reporting by Rajendra Jadhav; Editing by Susan Fenton)

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By Rajendra Jadhav

MUMBAI, Oct 29 (Reuters) - Indian buyers of gold brushed off record high prices and made purchases for the Dhanteras and Diwali festivals starting on Tuesday, hoping bullion would continue to rally and deliver promising returns amid a cooling stock market, industry officials told Reuters.

Robust demand in the world's second-biggest gold consumer could further support global prices XAU=, which hit record highs last week. Rising demand for imports of gold could also widen India's trade deficit and put pressure on the rupee INR=IN.

"People are still into gold big time, even with prices at record highs during Dhanteras. With gold giving better returns than the stock market, there's been solid demand for coins and bars," said Saurabh Gadgil, chairman of PNG Jewellers PNGD.NS.

Indians were celebrating Dhanteras on Tuesday, a day considered auspicious for buying gold and one of the busiest gold-buying days in India.

Local gold prices MAUc1 jumped to a record high of 78,919 rupees per 10 grams last week, marking an increase of more than 31% since last year's Diwali. India's NSE Nifty 50 share index has dropped about 7% from a record high hit on Sept. 27.

Investors are working to diversify their portfolios by adding to or increasing their allocations in gold and silver, Gadgil said.

"In value terms, turnover during this year's Dhanteras is expected to be significantly higher than last year due to higher prices. In volume terms, it may be slightly lower or around the same level as last year," Prithviraj Kothari, president of the India Bullion and Jewellers Association (IBJA), said.

Indian dealers on Tuesday charged a premium XAU-IN-PREM of up to $1 an ounce over official domestic prices – inclusive of 6% import and 3% sales levies, up from the last week’s discount of $4.

Local silver futures MSVc1 hit a record high of 100,081 rupees per kilogram last week.

"Demand for silver coins and bars was strong today, as silver has delivered better returns than gold in recent months," said Chirag Thakkar, CEO of Amrapali Group Gujarat, a leading silver importer.

(Reporting by Rajendra Jadhav; Editing by Susan Fenton)

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Oct 9 (Reuters) -

• CHAIRMAN EMERITUS OF INDIA'S TATA GROUP RATAN TATA IN CRITICAL CONDITION IN INTENSIVE CARE IN MUMBAI HOSPITAL- SOURCES

Source text for Eikon: [ID:]

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** Shares of Titan Co TITN.NS shed 2.2%

** Investec says the jewelry and watch maker's pre-earnings update indicates muted profit growth for Sept quarter

** Says while jewelry business saw 25% rev growth, margins could have been pressured by weakness in studded jewelry business and one-time hit from import duty cut in gold

** Expects 190 bps contraction in EBITDA margins in Sept quarter

** TITN shares down 2.5% YTD, while the benchmark Nifty 50 .NSEI has risen 14.2%

(Reporting by Bharath Rajeswaran in Bengaluru)

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Oct 4 (Reuters) - Titan Company Ltd TITN.NS:

• REGISTERED A GROWTH OF 25% YOY IN Q2FY25

• JEWELLERY DOMESTIC OPERATIONS GREW 25% YOY IN Q2 AFTER A RELATIVELY SOFT Q1

Source text for Eikon: [ID:]

Further company coverage: TITN.NS

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Sept 25 (Reuters Breakingviews) - Blackstone BX.N is grabbing at some of the sparkle from India’s booming equities market. Steve Schwarzman's investment firm plans to list a certifier of diamonds at a valuation seven times what it paid last year to buy the company from China's Fosun International 0656.HK and Belgium's Lorie family. Listing the business in the world's second-largest market for the rock makes sense, and will bag the U.S. buyout firm a sparkling return.

International Gemmological Institute certifies one-third of the world’s diamonds, studded jewellery and coloured stones, according to its prospectus. Most of its clients are based in the cutting and polishing hubs of Mumbai and neighbouring Gujarat state, and nearly all of its top line originates in the country.

Crucially, IGI will use almost a third of some $470 million IPO proceeds to buy its units in the Netherlands and Belgium, where IGI was founded in 1975, from Blackstone. After the rejig, the private equity giant will remain the controlling shareholder and the company will become an Indian-led entity. That helps IGI list in the South Asian country and target a valuation of $4 billion, as Moneycontrol reported last month, citing an unnamed source.

That headline figure looks polished, rather than punchy. It equates to 68 times EBITDA for 2023. None of IGI’s peers - the nonprofit Gemological Institute of America and Belgium’s HRD Antwerp among them - have publicly traded shares. Indian bling sellers Titan TITN.NS , backed by the Tata Group, and Kalyan Jewellers KALN.NS, are adorned with multiples of 64 and 54 times EBITDA.

IGI is growing fast and is more profitable than both those Indian companies. Its top line grew 30% in 2023, outpacing Titan and just shy of Kalyan's 32% growth in the year to the end of March. The diamond company's 37% net profit margin for 2023 is five times that of Titan and more than 10 times Kalyan's.

Unlike certifiers, jewellers have a more diversified range of products that could see them through periods of poor demand for studded pieces and price downturns. And while India is experiencing a surge in its love for diamonds, displacing China as the top buyer of the natural variety, Indians have cared little so far for the lab-grown variety of the gem, which accounts for 60% of IGI’s revenue.

Nonetheless, with rosy projections laid out in IGI's prospectus for a double-digit rise in jewellery consumption over the next five years, Blackstone's polishing up of its diamond bet appears well-timed.

Follow @ShritamaBose on X

CONTEXT NEWS

Blackstone is eyeing a valuation of around $4 billion for jewellery certifier International Gemmological Institute in a Mumbai initial public offering, news website Moneycontrol reported on Aug. 27, citing an unnamed source.

The offer will comprise new shares worth up to 12.5 billion rupees ($149 million) and existing shares worth up to 27.5 billion rupees ($328 million), per the draft prospectus.

(Editing by Una Galani and Ujjaini Dutta)

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Aug 28 (Reuters) - Titan Company Ltd TITN.NS:

• TANISHQ AND DE BEERS FORGE STRATEGIC COLLABORATION

• COLLABORATION TO BOOST INDIA'S NATURAL DIAMOND JEWELLERY MARKET

Source text for Eikon: [ID:]

Further company coverage: TITN.NS

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By Rajendra Jadhav and Sherin Elizabeth Varghese

BENGALURU, Aug 26 (Reuters) - Gold demand in India during the upcoming festive season is likely to remain robust, as the substantial reduction in import duty has made prices appealing, providing comfort to retail consumers and encouraging purchases, industry officials said.

Higher demand in the world's second-largest gold consumer could support a rally in global prices XAU=, which hit a record high last week. But higher demand for gold imports could increase India's trade deficit and weigh on the rupee MAUc1.

"The primary beneficiaries of the reduced duty cut will be retail consumers," said Sachin Jain, CEO of the World Gold Council's Indian operations.

India slashed import duties on gold in July to 6% from 15%, a step aimed at tackling smuggling.

Demand during the upcoming festival season will be very strong, Jain told Reuters on the sidelines of the India Gold Conference.

Gold demand in India usually strengthens towards the end of the year, which coincides with the traditional wedding season and major festivals including Diwali and Dusherra, when bullion buying is considered auspicious.

Retail demand has improved since the duty cut brought down prices and this momentum seems likely to continue in the coming months, said Ajoy Chawla, CEO of Jewellery division at Titan TITN.NS

Global prices hit a record high last week, but in India, domestic prices MAUc1 were around 71,800 rupees per 10 grams on Monday, below a record high of 74,731 rupees hit in July.

The duty cut changed sentiment among retail consumers, which were postponing purchases because of the price rise, Asher O, managing director of India Operations at Malabar Gold and Diamonds.

Gold prices could have hit a new record high above 80,000 rupees without the duty cut, but now they are trading below the peak, which is likely to increase demand from the next month's Onam festival, said Asher.

(Reporting by Rajendra Jadhav and Sherin Elizabeth Varghese; Editing by Michael Perry)

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BENGALURU, Aug 5 (Reuters) - Titan's shares fell 4.1% on Monday, after the Indian jeweller and watchmaker missed first-quarter profit estimates on Friday as higher gold prices hindered demand in its mainstay jewellery segment.

Titan was the top loser on the Nifty 50 index .NSEI, which is down 1.68%.

The Tata group-owned company reported a 5% fall in consolidated profit to 7.15 billion rupees ($85.31 million), missing analysts' expectation of a profit of 7.65 billion rupees, as per LSEG data.

The company's revenue grew at its slowest pace in four quarters, as surging gold prices deterred demand.

Its shares are down nearly 10% so far this year, compared to a 12% gain in the benchmark Nifty 50 index.

($1 = 83.8150 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Janane Venkatraman )

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