India’s jewellery market is going through a structural shift. More buyers are moving from local, unorganised jewellers to organised chains, while branded players are also pushing higher-value products and expanding into smaller cities.
That shift has put jewellery stocks firmly on investors’ radar. But are all listed jewellery companies positioned equally?
The domestic brokerage house Motilal Oswal has given its outlook on the Jewellery sector stocks.
The brokerage remains positive on Titan Company, Kalyan Jewellers and P N Gadgil Jewellers, while it has a Neutral rating on Senco Gold.
Among the four, Kalyan offers the highest potential upside of 33%, based on the brokerage’s target price.
| Stock | Rating | Target price | Upside |
| Kalyan Jewellers | Buy | Rs 800 | 33% |
| P N Gadgil Jewellers | Buy | Rs 800 | 27% |
| Titan Company | Buy | Rs 6,000 | 17% |
| Senco Gold | Neutral | Rs 430 | 6% |
So, what is driving this difference?
Motilal Oswal’s jewellery sector view: Two big shifts
According to Motilal Oswal, the long-term growth story for organised jewellery retailers is being driven by formalisation and premiumisation.
In simple words, formalisation means consumers shifting from smaller, unorganised jewellers to established brands. Premiumisation, meanwhile, refers to customers buying higher-value products, including studded and design-led jewellery.
The brokerage estimates that organised retailers now account for around 40-45% of India’s jewellery market, compared with 20-25% in FY19.
“Formalisation is far from complete, with only 40-45% of the market being organized,” added Motilal Oswal in its report.
That leaves a sizeable portion of the market still open for organised players.
The listed jewellery universe generated revenue of around Rs 1.4 lakh crore in FY26, with revenue growing at a 34% compound annual growth rate (CAGR) between FY22 and FY26, according to the brokerage.
Titan Vs Kalyan: Which stock gets the edge?
Motilal Oswal continues to prefer Titan and Kalyan Jewellers as its top picks in the sector.
For Titan, the brokerage has retained a Buy rating and a target price of Rs 6,000, implying around 17% upside. Titan remains the largest player among the tracked organised retailers, with around 9% of India’s jewellery market.
Kalyan Jewellers gets a target of Rs 800, suggesting around 33% upside.
The brokerage said, “We continue to prefer Titan and Kalyan Jewellers as our top picks.”
Why Kalyan’s higher upside? Its expansion beyond South India and growing presence in smaller cities could provide room for further market-share gains.
PN Gadgil: Can expansion drive the next leg?
Motilal Oswal has also retained its ‘Buy’ rating on PN Gadgil Jewellers with a target price of Rs 800, indicating around 27% upside.
The brokerage sees the broader shift towards organised retail as a key opportunity for the company. Store additions across Tier-2, Tier-3 and Tier-4 cities are becoming increasingly important as jewellery chains look beyond major urban markets.
Motilal Oswal noted, “Expansion is also increasingly asset-light, shifting inventory and capex to partners, a structural positive for RoCE.”
Senco Gold: Why is the brokerage cautious?
Senco stands apart from the other three stocks. Motilal Oswal has maintained a ‘Neutral’ rating with a target price of Rs 430, implying only around 6% upside.
One factor highlighted by the brokerage is the difference in studded jewellery penetration. Titan has a high-20% studded mix, while Kalyan is around 30%. Senco and PN Gadgil are closer to 10-11%.
“Premiumisation is emerging as the second structural growth driver after formalisation,” added the brokerage house in its report.
What investors need to watch out for next
Motilal Oswal expects the jewellery sector to benefit from continued formalisation, premiumisation and store expansion.
The brokerage also noted that around 68% of new organised jewellery stores added between June 2024 -2026 were in cities outside metros and Tier-1 locations.
Disclaimer: This article is based on research reports from one or more brokerage firms and is for informational purposes only. The views, target prices, and recommendations expressed are those of the respective brokerage firms and do not reflect the official policy or position of Financial Express. This should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor before making any investment decisions.