Synopsis : Motilal Oswal has reaffirmed its bullish stance on three stocks—Marico, Kalyan Jewellers and PN Gadgil Jewellers—citing strong earnings visibility, business expansion and healthy demand trends. The brokerage sees upside potential ranging from 18% to 47%, with each company backed by different growth drivers, including retail expansion, margin improvement and robust consumer demand.
Motilal Oswal Financial Services has reiterated its 'Buy' recommendation on three companies—Marico, Kalyan Jewellers, and PN Gadgil Jewellers—highlighting strong earnings prospects, expanding businesses and improving operating performance. According to the brokerage, these stocks offer upside potential of 18% to 47% from their current market prices.
Kalyan Jewellers: Retail Expansion Supports Growth
Motilal Oswal has maintained a 'Buy' rating on Kalyan Jewellers with a target price of Rs 525, implying an upside potential of nearly 47%.
The brokerage noted that the company reported around 38% year-on-year consolidated revenue growth during the first quarter of FY27. Although this was slightly below its estimate of 45%, the retailer continued to aggressively expand its store network.
During the quarter, Kalyan Jewellers opened 12 new Kalyan showrooms and five Candere outlets in India. As of June 30, 2026, the company operated 524 stores across domestic and international markets.
The report also highlighted the success of the company's 'Shine with India' gold recycling initiative. Recycled gold contributed over 46% of quarterly revenue, with the proportion exceeding 55% during June 2026, helping improve sourcing efficiency.
Marico: Margin Expansion Remains the Key Trigger
Motilal Oswal has retained its 'Buy' recommendation on Marico with a target price of Rs 1,000, indicating an upside potential of around 18%.
The brokerage expects Marico to deliver healthy earnings growth in FY27, supported by stronger demand for its Parachute coconut oil, stable growth in value-added hair oils and continued momentum in its foods and digital-first businesses.
A significant decline in copra prices, the company's key raw material, has improved the earnings outlook. Copra prices have fallen nearly 45% from their peak, enabling Marico to reduce product prices by 15–20% while improving profitability.
Management has guided for 150–200 basis points of EBITDA margin expansion during FY27.
Motilal Oswal also expects Marico's India business to deliver double-digit volume growth and more than 20% revenue growth in the first quarter of FY27.
The company remains focused on achieving over Rs 15,000 crore revenue in FY27 and aims to cross Rs 20,000 crore by FY30, while strengthening its international operations.
PN Gadgil Jewellers: Strong Retail Demand Continues
The brokerage has also maintained a 'Buy' rating on PN Gadgil Jewellers with a target price of Rs 700, implying an upside potential of nearly 22%.
The jewellery retailer reported 41% year-on-year revenue growth during the first quarter of FY27.
Its retail business performed particularly well, with revenue increasing 56% year-on-year, while same-store sales growth stood at 46%.
Motilal Oswal noted that demand for studded jewellery continues to improve, and newly launched stores across northern and central India are witnessing encouraging customer traction.
The company plans to open 25 new stores during FY27, taking its total network to 103 outlets.
The brokerage added that the company's financial performance remains consistent with its previously guided gross margin and EBITDA margin range of 7–7.5% for FY27.
What Investors Should Watch
According to Motilal Oswal, each company offers a distinct growth opportunity.
Marico is expected to benefit from easing raw material costs and expanding margins, Kalyan Jewellers continues to strengthen its retail presence while increasing the use of recycled gold, and PN Gadgil Jewellers remains well positioned with strong retail demand and an aggressive store expansion strategy.
Disclaimer : This article is for informational and educational purposes only and should not be construed as investment advice or a recommendation to buy, sell or hold any security. Brokerage views, target prices and earnings estimates are subject to change based on market conditions and company performance. Investors should conduct their own research and consult a SEBI-registered investment advisor before making any investment decisions.
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