Kalyan Jewellers, Titan shares: Brokerage sees up to 81% upside; here’s why

JM Financial believes that while fashion retailers and fast-food chains grapple with slow demand, the country’s appetite for jewellery remains positive. In its latest sector note, the brokerage has recommended a strong ‘Buy’ recommendation for Kalyan Jewellers India and Titan Company, projecting an upside of up to 81%.

At last check on Wednesday, Kalyan shares were down 1.57% to Rs 414.20 apiece on BSE, while Titan stock edged up 0.27% to Rs 4247.95 per share.

“Jewellery sustained its strong momentum in Jan’26 despite gold price volatility, QSR
exhibited early glimpses of demand bottoming out with most QSRs calling out positive
momentum in Jan’26,” JM Financial said.

JM Financial noted that Kalyan Jewellers has beaten estimates on multiple fronts; the brokerage has pinned a target price of Rs 750 on the stock, which implies a massive upside of nearly 81% from current levels.

In Q3 FY26 Kalyan posted a revenue growth of 42% year-on-year (YoY). The brokerage highlighted that this surge was led by 27% LTL (like-to-like) growth and healthy store additions, alongside a 65% spike in gold prices that aided topline value.

While some peers saw margins squeezed, Kalyan beat our EBITDA estimate as margins expanded by 50 basis points, JM Financial said.

For Tata Group’s Titan Company, JM Financial maintained a target price of Rs 5,000. Titan’s jewellery arm (excluding bullion) clocked a revenue growth of 40% YoY, driven by a 32% LTL growth, it said. 

“10/11/24 stores were added under Tanishq/Mia/Caratlane. Watches/Eyewear posted 14%/18% YoY revenue growth, with EBIT growing higher at 44%/20% YoY,” the brokerage said.

“We expect strong demand traction to sustain in the Jewellery and Footwear spaces; meanwhile, watch out for earnings cuts in QSRs possibly bottoming out and with it even the sector valuations,” the brokerage added.