HSBC’s equity research team has reaffirmed its Buy recommendations on Titan Company Ltd and Kalyan Jewellers Ltd, setting target prices of Rs 5,550 and Rs 770 respectively. The brokerage highlighted a favourable backdrop for the jewellery sector, noting that both firms stand to benefit from expanding daily‑wear jewellery consumption and a growing B2B manufacturing pipeline. The move comes as the Nifty jewellery index has been edging higher, adding a modest lift to the broader Nifty 50 performance. Analysts point to rising disposable incomes, a younger demographic favouring affordable gold and diamond pieces, and increased export orders as key drivers of the sector’s growth.
Titan’s strong retail footprint and Kalyan’s aggressive store expansion position them to capture a larger share of this demand. Additionally, both companies are scaling their B2B operations, supplying jewellery manufacturers and OEM partners, which could provide a steadier revenue stream beyond consumer sales. For the average Indian investor, HSBC’s endorsement suggests that the two stocks may outperform in the near term, especially if the Nifty jewellery index continues its upward trajectory. However, the brokerage warns that volatility in global gold prices and intensifying competition from both domestic and international players remain material risks.
Investors should weigh these factors against the upside potential and consider a measured allocation within a diversified portfolio. Overall, the HSBC picks underscore the sector’s growth narrative, but prudent investors must monitor gold price swings and competitive pressures before increasing exposure to Titan or Kalyan Jewellers.