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Motilal Oswal Report
Motilal Oswal Financial Services believes Kalyan Jewellers India Ltd. remains well positioned in the organised jewellery market, supported by a strong brand franchise, a diversified product portfolio and an expanding pan‑India store network.
The brokerage highlighted the successful scale‑up of the company's franchise‑led model, which now contributes nearly 50% of revenues. Strong traction in non‑South markets has further strengthened Kalyan Jewellers' growth profile. An improving studded jewellery mix, coupled with an asset‑light expansion strategy, continues to support healthy cash‑flow generation, balance‑sheet deleveraging and profitability improvement.
Motilal Oswal noted that Kalyan Jewellers has delivered a robust revenue, Ebitda and adjusted profit after tax compound annual growth rate of 33%, 29% and 54%, respectively, over FY22–FY26E. Looking ahead, the brokerage expects the company to sustain healthy growth, modelling a CAGR of 21% in revenue, 19% in Ebitda and 23% in PAT over FY26–FY28E.
At current levels, the stock trades at around 24x and 20x FY27 and FY28 estimated earnings, respectively, and at less than 1x FY27E sales, which Motilal Oswal believes offers an attractive risk‑reward proposition.
The brokerage has reiterated its Buy rating on Kalyan Jewellers with a target price of Rs 550, valuing the stock at 30x March 2028E earnings.
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