“It removes the uncertainty which the street had that if the lab-grown diamonds pick up significantly, how will Titan gain from it, or its core business might lose out from this,” Aggarwal said, adding that Titan’s strong brand equity
positions it well as the LGD market gradually expands in India.
While the initial financial impact may be limited, Aggarwal expects the contribution to Titan’s sum-of-the-parts valuation and target price to build over time as the ‘beYon’ brand scales up. With only one store opened so far, he believes the move is more strategic than immediately accretive, but remains constructive on the stock’s near-to-medium-term outlook.
In contrast, Aggarwal views Coforge’s acquisition of more than $2 billion as a long-term strategic bet rather than a near-term earnings driver. “AI is something which is like a new buzzword. Everyone is trying to go into that segment. So, this $2 billion-plus kind of an investment, that actually will position them well into that segment,” he said, stating that the deal helps Coforge align itself with the artificial intelligence theme.
However, Aggarwal urged caution regarding the near-term financial impact of the acquisition, noting that the acquired company is growing at around 10%, which limits immediate accretion to Coforge’s numbers. “In the longer term, it will depend upon how they can capitalise on this acquisition and how it actually adds to their growth and profitability. But in the near term, I don’t see it as going to be interest accretive for them,” he said.
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