Shares of Kalyan Jewellers India Ltd. continue to extend their rally, gaining nearly 5% in early trade on Thursday, Nov. 12. The stock has gained for seven straight sessions, rallying more than 33% during the period.
At around 9:23 a.m., the stock was trading at Rs 696.85 apiece on the NSE, up 4.99% from its previous close of Rs 663.75.
The rally intensified with the company's strong Q2 performance and continued optimism from brokerages UBS and HSBC, both of which maintained their Buy ratings on the stock following their assessment of the company's growth outlook.
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Kalyan Jewellers September-Quarter Results
Kalyan Jewellers reported a 63.9% year-on-year increase in consolidated net profit to Rs 427 crore for the September quarter.
Revenue from operations rose 31.4% to Rs 10,323 crore during the quarter, while Ebitda or earnings before interest, taxes, depreciation, and amortisation increased 29.7% to Rs 644 crore. However, the Ebitda margin declined marginally to 6.2%.
The strong revenue and profit growth provided support to the stock, with festive and wedding-season demand remaining important growth drivers for the jewellery retailer.
Also Read: Kalyan Jewellers Q2 Results: Profit Jumps 64% To Rs 427 Crore On One-Time Gain, Revenue Up 31%
What Brokerages Say On Kalyan Jewellers
UBS maintained its Buy rating on Kalyan Jewellers with a target price of Rs 900. The brokerage expects strong festive and wedding demand, supported by healthy same-store sales, to sustain growth. UBS also sees franchise-led store expansion supporting long-term growth and capital efficiency. The brokerage expects earnings per share to grow at a compound annual growth rate of 35% between fiscal 2026 and 2029.
HSBC also retained its Buy rating, with a target price of Rs 770. The brokerage highlighted strong demand during Navratri and Dhanteras, adding that management remains optimistic about the wedding season and expects a strong quarter end.
However, HSBC flagged the need for further clarity on inventory gains and customs-duty benefits to assess the underlying profitability.
Kalyan Jewellers Stock Price Performance
Apart from today's rally, the stock has been in the limelight for a prolonged period. It has gained more than 792% over the past five years, 36.97% in the past three years, and close to 44% over the past year.
Currently, the stock is trading at a price-to-earnings multiple of 42.8 times, with a market cap of Rs 71,853.7 crore.
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