Stock to Buy in Market Fall: MOFSL picks 2 jewellery stocks; targets signal up to 25% gains

Motilal Oswal Financial Services Ltd (MOFSL) Stocks to BUY: Amid the sharp correction in the equity markets, investors looking to deploy fresh money may consider selective buying in quality stocks, according to domestic brokerage Motilal Oswal. The brokerage has identified two jewellery stocks—Titan Company and Kalyan Jewellers—as attractive buys, citing strong business updates and growth visibility, with upside potential of up to 25 per cent.

The brokerage believes jewellery stocks are well placed to benefit from sustained festive and wedding season demand, even as broader markets remain volatile.

Titan’s lab-grown diamond foray adds growth trigger

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Motilal Oswal has maintained a Buy rating on Titan Company, highlighting the company’s recent entry into the lab-grown diamond (LGD) segment through the launch of its new brand ‘beYon’. Titan has also inaugurated its first exclusive LGD store.

LGD jewellery is priced at around Rs 23,000–25,000 per carat under the beYon brand which is much lower than peers who price similar offerings at Rs 40,000–50,000 per carat. Titan also plans to have an omni-channel approach, leveraging from both online and offline platforms. The company also aims to open 5–10 beYon stores in Mumbai and Delhi NCR.

The brokerage believes launching a separate LGD brand is a prudent strategy as it allows Titan to expand into a new segment without diluting the premium positioning of its natural diamond portfolio. Following the business update, Motilal Oswal has raised Titan’s FY26–FY28 EPS estimates by 2–5 per cent.

The brokerage has retained a target price of Rs 5,000, implying an upside of about 17 per cent, based on 60x March 2028 earnings.

Kalyan Jewellers Q3FY26 business update helps sentiment

Motilal Oswal has also turned bullish on Kalyan Jewellers after the company reported a strong Q3FY26 business update, driven by robust festive and wedding season demand.

During the quarter, Kalyan Jewellers expanded its retail footprint with:

21 new showrooms in India

1 new showroom in the UK

14 new Candere showrooms in India

As of Q3FY26, the company operates a total of 469 stores.

The brokerage noted that Kalyan Jewellers’ India business recorded nearly 42 per cent year-on-year growth in Q3FY26, supported by strong demand across both plain gold and studded jewellery. Same-store sales growth (SSSG) stood at a healthy 27 per cent, improving sharply from 16 per cent in the previous quarter.

Motilal Oswal has assigned a Buy rating on the stock with a target price of Rs 650, indicating an upside potential of around 25 per cent from current levels.

Outlook

Motilal Oswal believes that despite near-term market volatility, strong brand equity, expansion plans, and healthy demand trends make Titan Company and Kalyan Jewellers attractive bets for investors seeking quality exposure in the jewellery space.