ICICIdirect has maintained 'Buy' on Titan Company with target price of Rs 280 as against current market price (CMP) of Rs 255 with 10% in its report.

Commenting on the investment rationale, ICICIdirect said, ''The government has decided to allow five domestic private sector banks, viz. HDFC Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank and Yes Bank, to import gold within the prescribed limits. The limits will be decided based on the number of export oriented customers with the bank.

This is the first step by the government to ease norms on import of gold. This move is likely to boost gold supply, thereby bringing down the prevailing premium on gold prices. Based on our analysis, we opine that after the imposition of various restrictions on import of gold, Titan has been among the better performers.

We continue to remain positive on Titan as we expect it to be a beneficiary of the shift from the unorganized to the organized jewellery segment. We believe Titan is well poised to cope with the current regulatory framework considering its strong balance sheet.

The recently granted approval to hedge internationally further eases the company's inventory risk concerns. We, thereby, maintain Buy on Titan Company with a target price of Rs 280.''

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