Kalyan Jewellers shares hit Rs. 438.15 after strong quarterly business performance boosted investor confidence significantly.
Citi maintained a Buy rating with Rs. 750 target, driving fresh buying across markets today.
Domestic demand, Candere growth and aggressive showroom expansion strengthened the company’s long-term growth outlook remarkably.
Kalyan Jewellers shares staged a remarkable comeback on Dalal Street, surging nearly 24% over the past two trading sessions after the jewelry retailer reported a robust first-quarter business update and received a strong endorsement from global brokerage Citi. The stock is currently trading at Rs. 438.15 on the NSE, up Rs. 81.84 or 22.98%, after hitting the upper circuit, reflecting renewed investor confidence in the company’s growth prospects.
This rally is the result of a positive market response following the company's robust revenue growth, not just at home but abroad as well, and strong performance from its online jewelry store, Candere. This was further supported by Citigroup’s decision to reiterate its ‘Buy’ rating with a target price of Rs. 750.
Also Read: Kalyan Jewellers Shares Sink 8.21% After PM Modi’s Gold Appeal Despite Strong Q4 Results
Kalyan Jewellers provided a solid start to the financial year FY27, posting consolidated revenue growth of around 38% year-on-year during the quarter ending June. Revenue growth was driven by strong demand in the Indian market, despite seasonal factors affecting jewelry purchases.
Domestic sales were the key contributor to revenue growth, with about 38% growth compared to the previous year. Existing stores delivered strong performance with same-store sales growth of 28%. International operations performed well during the period, with nearly 35% year-on-year growth, while the company’s Middle East business grew 30% year-on-year. International markets accounted for 14% of total consolidated revenue.
The Kalyan Jewelers’ online jewelry brand, Candere, showed a 112% year-on-year revenue growth. The retailer also accelerated its expansion strategy during the quarter by opening 12 new Kalyan Jewellers showrooms and 5 new Candere outlets, expanding its retail presence into more cities across the country.
| Particulars | Performance |
|---|---|
| Consolidated Revenue Growth | 38% YoY |
| India Revenue Growth | 38% YoY |
| Same-Store Sales Growth | 28% |
| International Revenue Growth | 35% YoY |
| Middle East Revenue Growth | 30% YoY |
| International Revenue Contribution | 14% |
| Candere Revenue Growth | 112% YoY |
| New Kalyan Showrooms | 12 |
| New Candere Stores | 5 |
Global brokerage Citi remained optimistic on Kalyan Jewellers despite the company’s revenue growth coming in slightly below its internal estimate of around 45%. Maintaining a ‘Buy’ rating, the brokerage reiterated its target price of Rs. 750, implying substantial upside from prevailing levels.
Citi believes that the company’s brand-based expansion strategy will generate earnings growth while keeping capital expenditure in check. Moreover, analysts expect improvement in operational efficiencies and better returns on investment as the company grows.
| Growth Driver | Impact |
|---|---|
| Strong domestic demand | Boosted quarterly revenue |
| 28% same-store sales growth | Demonstrated healthy consumer spending |
| 112% growth in Candere | Strengthened digital business |
| Rapid showroom expansion | Increased long-term growth potential |
| Healthy international operations | Diversified revenue base |
| Citi’s Rs. 750 target price | Reinforced investor confidence |
According to management, demand has been encouraging at the start of the second quarter, buoyed by festive purchases and the upcoming wedding season. Analysts feel that branded jewelry players like Kalyan Jewellers are well-placed to capitalize on consumers’ growing preference for brands that offer fair pricing and certified jewelry.
Despite volatile gold prices and competition, robust sales growth, increased retail presence, and improved digital performance will be the key factors sustaining an encouraging outlook for the company. With excellent operations, strong growth, and bullish brokerage reports, Kalyan Jewellers is expected to remain in the spotlight until it reports its quarterly results.
1. Why did Kalyan Jewellers shares rally sharply?
The stock surged after reporting strong Q1 revenue growth, expanding stores rapidly, and receiving Citi’s Buy rating with a Rs. 750 target.
2. What was Kalyan Jewellers’ latest share price?
Kalyan Jewellers traded at Rs. 438.15 on NSE, gaining Rs. 81.84 or 22.98%, after hitting the upper circuit during trading.
3. How did Kalyan Jewellers perform in Q1 FY27?
The company reported 38% consolidated revenue growth, 28% same-store sales growth, and strong international business expansion during the quarter.
4. Why is Citi bullish on Kalyan Jewellers?
Citi expects franchise-led expansion, healthy earnings growth, improving operational efficiency, and sustained demand to support long-term shareholder value creation.
5. What factors could influence Kalyan Jewellers’ future performance?
Gold prices, festive demand, wedding season sales, consumer spending, competition, and successful showroom expansion will influence future business performance.
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