HSBC has highlighted the rising adoption of lab-grown diamonds (LGDs) globally, noting that their share of total demand has climbed to 17 percent in the US. The brokerage said India is also poised to see higher adoption as more participants enter the market and natural diamond prices continue to fall.
Despite the structural shift in the diamond industry, HSBC’s detailed analysis of Titan’s stock-keeping units (SKUs) indicates limited risks for the company. It pointed out that Titan’s exposure to high-ticket studded jewellery or solitaires is relatively low, which reduces the impact of consumer preference shifts towards lab-grown alternatives.
HSBC said that while the rise of LGDs is a trend the broader jewellery sector must monitor, Titan’s product mix, brand positioning and diversified portfolio provide resilience against potential disruption.
Disclaimer: The views and investment recommendations expressed above are those of HSBC. They do not represent the views of this publication. This article is for informational purposes only and is not investment advice.
