Motilal Oswal Wealth Management has identified Titan and L&T Finance as its top weekly equity picks, projecting strong long-term growth. Analysts favor Titan for its expansion in higher-margin jewelry segments, while L&T Finance is highlighted for its transition into a technology-led retail loan model. Investors should monitor gold price stability for Titan and asset quality trends for L&T Finance.
Motilal Oswal Wealth Management has added Titan and L&T Finance to its list of top weekly picks, citing strong growth potential for both companies through the 2028 fiscal year. The brokerage firm has set target prices of Rs 6,000 for Titan and Rs 380 for L&T Finance, compared to their recent closing levels of Rs 5,139 and Rs 322, respectively, as of August 27, 2026.
Titan's Focus on Higher Margins
The brokerage anticipates that Titan will continue to grow through store expansion and its established brand presence, including Tanishq and CaratLane. Analysts project an 18% sales growth, 22% operating profit growth, and 25% profit after tax growth annually through 2028. The strategy relies heavily on increasing the share of studded jewelry in its sales mix, which generally carries higher profit margins than plain gold jewelry.
However, investors should be aware of the risks associated with this sector. Titan’s performance is sensitive to gold price fluctuations. While the current pricing environment remains relatively stable, any sharp volatility could impact consumer demand. Additionally, the company faces stiff competition in the organized retail jewelry market and relies on discretionary spending, which can slow down if the broader economic climate weakens.
L&T Finance's Retail Transformation
For L&T Finance, the focus is on a major shift in business strategy. The company is moving toward a technology-driven, retail-focused lending model. The brokerage projects an annual profit growth of approximately 30% through 2028, driven by expansion in segments like gold loans and micro-LAP (loans against property). Analysts expect this transition to improve the company's return on assets to 2.6% and return on equity to 15% within the same timeframe.
This transformation comes with its own set of challenges. As the company scales its retail loan book, it must manage the execution of this new model effectively. A primary monitorable for shareholders is asset quality; as the firm expands into these retail segments, maintaining low default rates and managing credit risks in the loan portfolio will be crucial for long-term profitability. Investors should also track how interest rate cycles affect the company’s cost of borrowing and its ability to maintain margins.
The final performance of these stocks will depend on Titan's ability to maintain its pricing power and L&T Finance's success in managing its expanding retail loan book without compromising on credit quality.