Editor’s Note
This article highlights Motilal Oswal’s “buy” recommendations for Titan and Kalyan Jewellers, citing a potential upside of 17-25%. Investors should note that brokerage opinions are not guarantees, and all investments carry inherent risk. Always conduct your own research or consult a financial advisor before making investment decisions.
Amid the downturn in the stock market, brokerage house Motilal Oswal has given a BUY recommendation on two strong stocks from the jewelry sector. The company has given an upside target of 17% to 25% on Titan and Kalyan Jewellers.
If you are looking for strong stocks to buy during a heavy market decline, you can consider buying based on the brokerage’s opinion. The domestic brokerage house Motilal Oswal has selected two strong stocks for purchase. Both these stocks have come under the brokerage’s radar because they belong to the jewelry segment. The brokerage company Motilal Oswal has recommended buying shares of Titan Company and Kalyan Jewellers and has given a target price with up to 25% upside.
Titan recently opened its first lab-grown diamond store and entered this segment. Additionally, Kalyan Jewellers has released its third-quarter updates, which appear strong due to the festive season. Considering these two updates, Motilal Oswal has given a buy recommendation on both these stocks.
Tata Group’s strong company Titan has stepped into the LGD (Lab Grown Diamond) jewelry segment. The company has opened its first ‘beYon’ brand store in Mumbai. On the occasion of the store launch, Titan management stated in a business update call that LGD jewelry prices have seen a sharp decline in recent years. This has happened due to increased supply and production capacity. They further said that this is a technology-based product, which could lead to further price declines for LGD.
- Currently, there are about 100 companies and around 500 stores in the LGD segment.
- In the initial phase, this segment has significant room for growth.
- The share of studded jewelry in the country is only 12–15%.
- The penetration of gold jewelry is close to 100%.
- LGD’s share in the studded jewelry market is only 2–4%.
The price of LGD jewelry in beYon is about ₹23,000–25,000 per carat, while other brands price it at ₹40,000–50,000 per carat. The company is focused on both online and offline markets. Titan has about 4 crore ‘House of Titan’ customers, of which approximately 1 crore are jewelry customers. Initially, Titan plans to open 5 to 10 beYon stores in Mumbai and Delhi NCR.
Brokerage house Motilal Oswal believes that launching a separate brand, beYon, for LGD is the right decision for Titan. This will make it easier for the company to target new and young customers. Additionally, it will not harm the value of its premium natural diamond brands.
Following the FY26 third-quarter business update, the brokerage has raised its FY26–FY28 EPS estimates for Titan by 2–5%. The brokerage has maintained a BUY rating on the stock and given a target price of ₹5,000, based on a P/E of 60x March 2028 earnings. Investors could see a return of up to 17% here.
Another leading company in the jewelry segment, Kalyan Jewellers, released its third-quarter updates, after which Motilal Oswal gave a Buy rating on this stock. Motilal Oswal has recommended buying this stock and given a target price of ₹650. The brokerage has given this target with a 25% upside. The brokerage has turned bullish after the quarterly update.
Kalyan Jewellers: Focus on Store Expansion
- Company opened new showrooms in 3QFY26.
- 21 new Kalyan showrooms in India.
- 1 new showroom in the United Kingdom.
- 14 new Candere showrooms opened in India.
- Kalyan Jewellers Store Count: 469
Kalyan Jewellers’ business in India grew by about 42% YoY in the third quarter of FY26. The biggest reason behind this growth has been strong demand during the festive and wedding seasons. Despite volatility in gold prices after Diwali, demand has remained. Growth has been seen in both plain gold and studded jewelry. Additionally, Same Store Sales Growth (SSSG) this quarter was also strong at 27%, although it was 16% in the second quarter of FY26.
Q1. Which stocks has Motilal Oswal recommended buying?
Motilal Oswal has given a BUY rating on two jewelry sector stocks: Titan Company and Kalyan Jewellers.
Q2. Why is the brokerage bullish on Titan Company?
Titan recently entered the Lab Grown Diamond (LGD) segment with the ‘beYon’ brand. Additionally, the brokerage is positive on Titan due to the company’s strong business outlook and EPS growth.
Q3. What is the target price for Titan’s share?
Motilal Oswal has given a target price of ₹5,000 for Titan’s share, which could see an upside of about 17%.
Q4. What is the reason for the BUY rating on Kalyan Jewellers?
Kalyan Jewellers showed 42% YoY growth in the third quarter of FY26, strong SSSG (27%), and rapid store expansion. Strong demand during the festive and wedding seasons has made the brokerage bullish.
Q5. What is the target price for Kalyan Jewellers?
Motilal Oswal has given a target price of ₹650 for Kalyan Jewellers’ share, which implies an upside of about 25%.
