Kalyan Jewellers Surges 34%: Brokerage Reaffirms Bullish Stance Amid Strong Q1 Growth and Expansion Plans

Kalyan Jewellers Surges 34%: Brokerage Reaffirms Bullish Stance Amid Strong Q1 Growth and Expansion Plans​

Kalyan Jewellers shares continued its impressive upward trend on Friday, rallying for the third consecutive session. The stock extended significant gains, showing a nearly 34 percent rally over three days. This strong performance follows Citigroup's reaffirmation of its 'Buy' rating, with the brokerage maintaining a target price of Rs 750 per share.

The stock settled at Rs 480 on Friday, marking an increase of over 8 percent for the day. The company's market capitalization soared to Rs 49,571.53 crore. This robust rebound has positioned Kalyan Jewellers significantly stronger than its peers, narrowing losses realized earlier this year.

Technical Strength and Market Positioning​

Nishchal Jain, a Quant Researcher at Share.Market by PhonePe, highlighted the strong technical fortitude of the stock. The company surpassed a 34 percent surge over the last three trading sessions after rebounding from a 52-week low of Rs 327.

Jain noted that the stock has established crucial support levels and resistance points for traders. A key support level is seen at Rs 373, while immediate resistance lies around Rs 530. Strong trading volumes observed by the expert suggest institutional buying interest, which could sustain further upward momentum.

Fundamental Drivers: Q1 FY27 Growth and Profitability​

The rally is underpinned by positive business fundamentals revealed in the company’s latest Q1 FY27 update. Consolidated revenue growth for the quarter stood at a robust 38 percent year-on-year. This was supported significantly by same-store sales growth of 28 percent in India.

Earlier, during a strong fiscal year (FY26), Kalyan Jewellers saw its net profit rise dramatically by 86.6 percent compared to the previous year. That FY26 performance saw revenue reaching Rs 31,262 crore with a profit margin standing at 3.8 percent. A recommended final dividend of Rs 2.50 per share reflects efficient inventory management and healthy cash flows.

Expansion Plans Drive Sentiment Shift​

The company's expansion strategy has emerged as a key focus point for investors following the recent stock surge. Candere By Kalyan Jewellers recorded a phenomenal revenue growth of 112 percent YoY in 1QFY27 alone. During this quarter, the company also inaugurated five new Candere showrooms.

Motilal Oswal analysts maintained their 'Buy' rating on the stock, setting a target price of Rs 525 per share. Their report highlighted robust operating momentum driven by healthy SSSG across all key markets. The company also added 12 new Kalyan showrooms in India during the quarter.

Expert Outlook: Buy on Dips and Long-Term Focus​

While the market reaction saw some volatility this week, following an earlier dip after the business update, Citi's bullish confirmation has successfully improved investor sentiment. This shift is leading investors to focus more heavily on long-term growth prospects and operational improvements rather than short-term results.

From a trading perspective, Quant Researcher Nishchal Jain advises existing investors to maintain a 'Hold' position while closely monitoring the stock’s business execution trajectory. For prospective fresh investors, he recommends adopting a "buy on dips" strategy during periods of price consolidation.