Now Reading: Motilal Oswal picks Titan and Kalyan Jewellers as top bets in jewellery sector
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Motilal Oswal picks Titan and Kalyan Jewellers as top bets in jewellery sector
Motilal Oswal picks Titan and Kalyan Jewellers as top bets in jewellery sector
Motilal Oswal has named Titan and Kalyan Jewellers as top picks in India's organised jewellery retail sector, with buy ratings and target prices of Rs 6,000 and Rs 800 respectively, implying upside…
The Story in Brief
Motilal Oswal has named Titan and Kalyan Jewellers as top picks in India's organised jewellery retail sector, with buy ratings and target prices of Rs 6,000 and Rs 800 respectively, implying upside of 18% and 34%. The brokerage says the organised segment now commands 40-45% of India's Rs 8.5 lakh crore jewellery market, nearly doubling from 20-25% in FY19.
Titan holds about 43% of branded jewellery stores and Kalyan about 17%, together making up nearly 60% of the organised retail footprint. Multiple brokerages have revised Titan's targets upward, Emkay to Rs 5,600, ICICI Securities to Rs 5,500, though HDFC Institutional Equities maintains a 'Reduce' rating on the stock with a DCF-based target of Rs 4,350. Over N Chandrasekaran's tenure as Tata Sons chairperson, Titan shares have gained 1,015%.
The Indian Opinion
The rally in Titan and Kalyan shares assumes the organised jewellery market can keep gobbling up mom-and-pop stores. But with RBI tightening consumer credit rules and gold prices staying volatile, that stream of easy buyers may slow. The real test for the "formalisation premium" will come next quarter: watch for same-store sales growth, not just store counts.
Sources (3): livemint.com, businesstoday.in, businesstoday.in (2)
This story was synthesised by AI from the 3 sources linked above.
Updated: this story now draws on 3 sources.
