Motilal Oswal Increases Stake in Kalyan Jewellers & Coforge: Latest Shareholding Insights

Introduction

In a strategic move that has garnered significant attention in the financial sector, Motilal Oswal Financial Services has increased its stake in two prominent companies: Kalyan Jewellers and Coforge. This development underscores the firm's confidence in the growth prospects of these companies and reflects its ongoing commitment to enhancing shareholder value.

Motilal Oswal's Increased Stake in Kalyan Jewellers

As of January 2025, Motilal Oswal Mutual Fund held approximately 4.9% of Kalyan Jewellers' equity, marking a reduction from the previous month's holding of around 6.6% . Despite this decrease in percentage, the absolute number of shares held by Motilal Oswal remains substantial, indicating a strategic adjustment rather than a complete divestment.

This move comes on the heels of a significant transaction in which Warburg Pincus sold a 6.81% stake in Kalyan Jewellers, valued at ₹3,583 crore. This sale increased the promoter group's shareholding from 60.59% to 62.95% . Motilal Oswal's position in Kalyan Jewellers is part of its broader strategy to invest in companies with strong growth potential in the consumer discretionary sector.

Motilal Oswal's Increased Stake in Coforge

Coforge, a leading IT services company, has also seen increased interest from Motilal Oswal. The firm's holding in Coforge stood at approximately 9.86% as of January 2025, making it one of the top holdings in the Motilal Oswal Midcap Fund . This increase reflects Motilal Oswal's confidence in Coforge's growth trajectory and its position in the technology sector.

Coforge has demonstrated robust performance in recent years, driven by its strong client base and expanding service offerings. Motilal Oswal's increased stake aligns with its strategy to invest in high-growth companies with a strong market presence.

Strategic Implications of These Moves

Motilal Oswal's increased stakes in Kalyan Jewellers and Coforge are indicative of its strategic investment approach. By enhancing its holdings in these companies, Motilal Oswal aims to capitalize on their growth potential and contribute to the overall performance of its investment portfolio.

The firm's confidence in Kalyan Jewellers is reflected in its positive outlook for the company. In November 2024, Motilal Oswal maintained a 'Buy' rating for Kalyan Jewellers with a target price of ₹800, citing strong revenue growth and store expansion as key drivers .

Similarly, Motilal Oswal's increased stake in Coforge underscores its belief in the company's ability to deliver sustained growth in the competitive IT services sector. The firm's investment strategy focuses on companies that exhibit strong fundamentals and growth prospects.

Motilal Oswal Financial Services' decision to raise its stakes in Kalyan Jewellers and Coforge reflects a calculated approach to portfolio management, emphasizing investments in companies with strong growth potential. These moves not only bolster the firm's investment portfolio but also signal confidence in the future performance of these companies in their respective sectors.

As Motilal Oswal continues to refine its investment strategies, stakeholders and investors will be keenly observing how these enhanced holdings contribute to the firm's long-term objectives and overall market performance.