Tariffs To Hit Jewellery Sector? Why Is Motilal Oswal Bullish On These Stocks Then?

Motilal Oswal has maintained a bullish view on top jewellery and watch retailers, including Titan Company, Kalyan Jewellers, and P. N. Gadgil (PNG), despite rising concerns over U.S. tariffs on Indian jewellery exports.

The brokerage sees strong domestic growth, premiumisation, and store expansions as key drivers supporting the long-term outlook.

Titan Company Share Price Target

Motilal Oswal has given a BUY rating on Titan with a target price of Rs 3,800, implying a 26% upside from its current market price (CMP) of Rs 3,022.

The company’s watches and wearables segment saw a 20% year-on-year (YoY) growth in its domestic business, with analog watches (Titan, Fastrack, Sonata) growing ~18% YoY.

All key retail channels—Helios, Titan World, and Fastrack—grew in strong double digits, with Helios performing the best, indicating a growing consumer preference for premium products. Titan added 41 new stores in the quarter, including 20 Titan World, 10 Helios, and 11 Fastrack outlets.

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Kalyan Jewellers Share Price Target  

Kalyan Jewellers is also rated BUY, with a target price of Rs 625, offering a 29% upside from its CMP of Rs 486. The company’s Indian business grew 39% YoY during the quarter. Same-store sales growth (SSSG) stood at 21%, maintaining strong momentum. Kalyan added 25 new showrooms in India during the period, reflecting continued confidence in expansion.

P. N. Gadgil (PNG Jewellers) Share Price Target

Motilal Oswal has the most aggressive rating on PNG Jewellers, with a target price of Rs 825 versus its CMP of Rs 511, suggesting a 61% upside. The company expects strong performance in FY26, fuelled by high demand during Akshaya Tritiya and an extended wedding season. It also sees rising consumer purchasing power and shifting preferences towards branded jewellery as long-term growth catalysts.

India’s Gems and Jewellery Sector

While the domestic outlook remains solid, the recent announcement of U.S. tariffs has raised concerns for India’s gems and jewellery sector. India exported $32.85 billion worth of gems and jewellery in FY24, with the U.S. accounting for 30.28% (nearly $10 billion).

In 2024, India exported $11.88 billion worth of diamonds, gold, and silver. However, a tariff differential of 13.32% now clouds the export outlook.

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