3 weeks ago
MOFSL recommends buying Titan, Kalyan Jewellers jewellery stocks
A big company that studies stocks, called MOFSL, made a report about jewellery shops in India.
The report says that more people are buying jewellery from big, organised stores instead of small shops.
This is good news for the big jewellery companies.
The big stores grew from 661 shops in 2019 to 2,002 shops, which is a lot of new shops.
The report says the two best companies to invest in are Titan and Kalyan Jewellers.
MOFSL says people should buy shares in these companies and even tells them what the share prices could reach.
It also says people are buying more gold coins, which might lower profits a little for now.
But in the future, selling better jewellery should help the companies earn more money.
The report also gives buy and wait advice for two other jewellery companies.
MOFSL named Titan and Kalyan Jewellers its top picks, with BUY ratings and target prices of Rs 6,000 and Rs 800 respectively.
India's jewellery store aggregates grew at a 22 per cent CAGR during FY22-26, reaching 2,002 stores from 661 in FY19.
MOFSL cited a double tailwind of formalisation and increasing premiumisation benefiting well-capitalised players.
The jewellery universe registered 29 per cent Ebitda and APAT CAGR each during FY22-26.
MOFSL reiterated a BUY on P N Gadgil with a target of INR 800 and remained NEUTRAL on Senco with a target of INR 430.
- Who
- MOFSL (Motilal Oswal Financial Services), an investment research firm, and the jewellery companies it covers: Titan, Kalyan Jewellers, P N Gadgil and Senco.
- What
- MOFSL recommended BUY ratings on Titan (target Rs 6,000) and Kalyan Jewellers (target Rs 800), citing strong store expansion and revenue growth in India's jewellery sector.
- Where
- India
- When
- The article does not state a specific date; it references growth over FY19-26 and notes a recent extension of gold-on-lease tenure from 180 to 270 days.
- Why
- Because of a 'double tailwind' of formalisation (unorganised to organised) and increasing premiumisation, with well-capitalised players as the primary beneficiaries.
Key facts
- Recommending firm
- MOFSL
- Top picks
- Titan and Kalyan Jewellers
- Titan target price
- Rs 6,000 (BUY)
- Kalyan Jewellers target price
- Rs 800 (BUY)
- P N Gadgil
- BUY, target INR 800
- Senco
- NEUTRAL, target INR 430
- Jewellery store growth
- 2,002 stores in FY26 from 661 in FY19
- Gold on lease tenure
- Extended from 180 days to 270 days
Quotes
MOFSL analysts
research analysts at MOFSL
“We see a double tailwind for the sector: formalisation (unorganised to organised) and increasing premiumisation, with well-capitalised players as the primary beneficiaries.”
businesstoday.in
“We continue to prefer Titan and Kalyan Jewellers as our top picks; we have a BUY rating on both with a target price of Rs 6,000 and Rs 800, respectively.”
businesstoday.in
Sources
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