Kalyan Jewellers Stock Soars Past Upper Circuit as Citi Reaffirms Buy, Targets Double Earnings

Kalyan Jewellers Stock Soars Past Upper Circuit as Citi Reaffirms Buy, Targets Double Earnings​

Shares of Kalyan Jewellers India witnessed a significant surge on Thursday, surging nearly 18 percent in intraday trade. This move extended the company's impressive gains over two sessions to approximately 24 percent. The stock breached several upper circuits after Citigroup reiterated its bullish stance and projected that the shares could more than double from its current levels.

The sharp rally saw the stock climb up to an intraday high of Rs 440, maintaining momentum generated by brokerage support. On Wednesday, investors benefited as Citi reaffirmed its Buy rating and set a target price of Rs 750 per share. The analyst's long-term target suggests substantial upside potential from even after the recent two-day rally.

Quarterly Performance Highlights for Kalyan Jewellers​

Despite initial jitters following last Tuesday's stock dip, Kalyan delivered robust performance in its April-June quarter update. The company reported consolidated revenue growth of approximately 38 percent year-on-year. This strong top-line expansion was supported across various business segments within the organization.

The India business segment saw a 38 percent growth, fueled by a healthy same-store sales growth (SSSG) of 28 percent. The international operations also performed strongly, registering around 35 percent year-on-year growth. International markets contributed approximately 14 percent to the consolidated revenue during the quarter.

Franchise Expansion and Digital Momentum Drive Growth​

The digital platform, Candere, remained the fastest-growing segment for Kalyan Jewellers. Its revenue surged a massive 112 percent year-on-year, showcasing the strength of the company's e-commerce presence. The management also announced physical network expansion, adding 12 Kalyan showrooms and five Candere stores during the quarter.

The total showroom network now stands at 524 as of June 30. Management indicated a positive outlook entering the second quarter, positioning for the forthcoming festive and wedding season. Citigroup highlighted this digital growth momentum as crucial to the company's long-term expansion strategy.

Brokerage Viewpoint and Peer Comparison​

Citi maintained its fundamentally positive view on Kalyan Jewellers, even though the June-quarter revenue growth was noted to be below market estimates. The brokerage firmly believes that the franchise-led expansion strategy will continue driving network growth while simultaneously improving the return on capital employed (RoCE).

When compared with industry rivals like Titan, however, some volatility exists. While Kalyan Jewellers achieved 38 percent revenue growth in India, Titan reported a 41 percent growth in its overall consumer business. Titan's international expansion was also noted to have more than doubled from the previous year.

At Thursday's intraday high of Rs 440, Kalyan Jewellers' market capitalisation stood at around Rs 44,850 crore. Despite this recent powerful rebound, the stock remains down approximately 10.6 percent in 2026, contrasting against an 8.1 percent decline observed in the Nifty 50.