Shares of Kalyan Jewellers Ltd are in focus duuring Tuesday's trading session after positive commentary during their recent management call. The management has characterised 10% growth as a manageable target for the period ranging from Q2 to Q4 of FY27.
Kalyan Jewellers shares rose as much as 2.66% to Rs 579 apiece. On a monthly basis, though, the stock is trading lower by 6.41%. However, on a 3-month basis, the stock is trading over 50% higher.
After the management call, UBS has also maintained a Buy rating on the jewellery stock with a target price of Rs 900 per share, citing a stronger growth outlook for the second half despite a high base. Management expects gold prices to have varying impacts on demand and ticket sizes across segments, while the company plans to continue its aggressive network rollout.
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Management has characterised 10% same-store growth (SSG) as a manageable target for Q2-Q4. The gold exchange rate is expected to remain high, although management said margins will be managed accordingly.
Kalyan Jewellers has only recently received 'buy' coverage by UBS. According to the brokerage, Kalyan has emerged as a pan-India jeweller, broadly emulating Titan's footprint in its network rollout, while standing out with its hyper-local value framwork. UBS highlighted that Kalyan Jewellers' shares have grown six-fold between fiscal 2022 and fiscal 2026, but still trade at a 45% discount to rivals such as Titan while revenue has grown at one of the highest compound annual growth rate among organised jewellers.
The brokerage estimates 23% revenue CAGR over the next five years, with upside risk if the new value format brand in southern India also scales up significantly. It also believes that Kalyan Jewellers' shares current valuation is very appealing, and leaves more room for further re-rating in the future.
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