Kalyan Jewellers India Ltd witnessed a sharp rally in its share price on Thursday, climbing more than 15% during intraday trading after global brokerage Citi upgraded the stock to a “Buy” rating. The brokerage also set a target price of Rs 750 per share, indicating a potential upside of nearly 97% from the stock’s opening level.
The positive sentiment was driven by the company’s strong business update for the first quarter of FY27. Kalyan Jewellers reported around 38% year-on-year growth in consolidated revenue, supported by robust demand across its domestic markets. Same-store sales in India increased by approximately 28%, highlighting continued consumer interest despite a higher base.
Although the reported revenue growth fell slightly short of Citi’s expectation of 45%, the brokerage remained optimistic about the company’s long-term outlook. Citi believes Kalyan Jewellers’ franchise-led expansion strategy will continue to drive growth while improving capital efficiency, strengthening the balance sheet, and enhancing return on capital employed (RoCE).
The company’s international operations also delivered solid performance, with overseas revenue growing around 35% year-on-year. The Middle East business recorded nearly 30% growth, supported mainly by strong same-store sales despite ongoing geopolitical uncertainties. International operations contributed roughly 14% of the company’s consolidated revenue during the quarter.
Kalyan Jewellers’ digital jewellery platform, Candere, continued its strong momentum by posting around 112% year-on-year revenue growth. During the quarter, the company expanded its retail footprint by opening 12 new Kalyan showrooms and five Candere stores across India.
Looking ahead, the management expressed confidence about the upcoming quarters, citing healthy consumer demand and expectations of strong festive and wedding season sales.
Despite its bullish outlook, Citi highlighted a few risks that investors should watch, including slower domestic revenue growth compared to Titan, a potential slowdown in jewellery demand, delays in balance sheet deleveraging, and any deviation from the company’s asset-light franchise expansion model.