Archive · 26 Jul 2025
Emkay Cuts Titan Rating on Damas Deal Concerns
Titan Company is buying a jewelry company called Damas.
A financial company called Emkay thinks this might not be a great idea.
They believe the purchase is expensive and might not make Titan's business much better.
Titan hopes to improve Damas by using their successful strategies from India.
The financial company is worried this might take up too much time and effort.
They also think it will be a while before the purchase starts making money for Titan.
They don't think the deal will significantly increase Titan's overall value.
Emkay Global Financial Services has a 'Reduce' rating on Titan Company due to concerns over the Damas Jewellery acquisition.
Titan is acquiring a 67% stake in Damas, a Dubai-based jewellery brand, planning to raise Rs 1,200 crore in debt for the deal.
Emkay believes the potential value creation from the acquisition is insignificant relative to Titan's size.
The report estimates the deal will become EPS accretive only by FY29.
Titan plans to improve Damas operations by applying its 'India playbook' and leveraging existing manufacturing.
- Who
- Emkay Global Financial Services, Titan Company, and Damas Jewellery.
- What
- Emkay Global Financial Services has lowered its rating for Titan Company due to concerns about the Damas Jewellery acquisition.
- When
- The report models a 15% CAGR for Damas Signature from CY24–CY27.
- Where
- Titan is acquiring Damas, a Dubai-based jewellery brand.
- Why
- Emkay believes the acquisition may offer insignificant value creation relative to Titan’s size.
Emkay's Concerns
Titan's Optimism
Operational Overhaul
Emkay's Concerns
Emkay believes the acquisition may occupy incommensurate bandwidth, as the business is in need of improving its retail KPIs in UAE (sourcing/merchandising), its network expansion in a less-penetrated KSA market, and a major overhaul of its Gold business.
Titan's Optimism
Titan plans to apply its “India playbook” by improving merchandising, sourcing, and replenishment strategies and leveraging its existing manufacturing and supplier ecosystem.
Value Creation
Emkay's Concerns
Emkay views the deal's potential value creation is insignificant relative to Titan's size.
Titan's Optimism
Titan sees potential in expanding the brand in the underpenetrated KSA (Saudi Arabia) market.
- Rating
- Reduce
- Acquisition
- 67% stake in Damas
- Debt planned
- Rs 1,200 crore
- Interest cost
- 6%
- Damas Signature Segment
- Represents 40% of Damas topline
- EPS Accretive
- FY29
- Damas Stores
- 146 (approx.)