Leading brokerage firm Motilal Oswal Financial Services Ltd has identified two standout stocks for investors to consider in the week commencing January 12, 2026. The firm's analysis points to significant potential upside for the financial technology platform Groww and the retail giant Titan Company.
Detailed Breakdown of the Top Picks
The recommendations come with specific price targets and a detailed rationale for each company's growth prospects.
Groww: Dominating Retail Broking
Motilal Oswal has set a target price of Rs 1,185 for Groww, which represents a potential upside of approximately 16% from its current market price (CMP) of Rs 1,059. The firm's bullish stance is rooted in Groww's meteoric rise in the Indian retail broking space.
The platform has achieved the remarkable feat of becoming the largest player in less than four years, commanding a 26.8% share of active clients on the NSE as of the first half of the fiscal year 2026. Its user base has swelled to 14.8 million active users. A key strength highlighted is its customer acquisition strategy, where over 80% of users are acquired organically. This keeps customer acquisition costs low and ensures short payback periods.
From its origins as a zero-commission mutual fund application, Groww has successfully transformed into a comprehensive wealth ecosystem. Its offerings now span equity and commodity broking, margin trading facilities (MTF), and credit products like loans against securities and mutual funds. Through its subsidiary Fisdom, it also provides wealth management services. Analysts project a robust ~30% compound annual growth rate (CAGR) in profit after tax (PAT) from FY25 to FY28, driven by higher yields from MTF, increased brokerage fees, expanded products, and monetization from affluent clients.
Titan: Sparkling Entry into Lab-Grown Diamonds
For Titan, Motilal Oswal has set a target of Rs 5,500, implying a 19% upside from its CMP of Rs 4,200. The optimism follows Titan's strategic launch of its first lab-grown diamond (LGD) brand, beYon.
This move positions Titan in a fast-growing segment that remains underpenetrated in the Indian market. The firm believes that falling LGD prices and attractive pricing can help expand the market for studded jewelry beyond the traditional dominance of gold. While the LGD space already has numerous players with around 500 stores, Titan's massive scale, design expertise, and aggressive pricing—estimated at Rs 23,000 to Rs 25,000 per carat—are seen as key differentiators.
Importantly, management views India as an "AND" market where natural diamonds and LGDs can coexist without cannibalizing each other. The launch of beYon allows Titan to tap into a new, value-conscious customer segment through a dedicated lifestyle brand, without diluting its core premium offerings of natural diamonds and solitaire jewelry. Following a strong business update for the third quarter of FY26, Motilal Oswal has raised its earnings per share (EPS) estimates for Titan by 2% to 5% for the fiscal years 2026 through 2028.
Investment Outlook and Implications
These picks underscore two major investment themes in the current Indian market: the digital disruption of financial services and the evolution of consumer discretionary spending. Groww represents a pure-play on the deepening penetration of capital markets in India, leveraging technology to build a profitable, scalable model. Titan's recommendation highlights a strategic corporate move to capture growth in an emerging niche while protecting its established brand equity.
For investors, the analysis suggests that both companies are well-positioned for sustained earnings growth, backed by clear competitive advantages and expanding market opportunities. The revised estimates for Titan and the detailed growth drivers for Groww provide a concrete foundation for the stated price targets.
(Disclaimer: The stock recommendations and views expressed are those of Motilal Oswal Financial Services Ltd and do not represent the views of The Times of India. Investors are advised to consult certified experts before making investment decisions.)
