- Kalyan Jewellers shares fell 1.37% amid concerns over rally momentum despite strong Q1 results
- The stock dropped to Rs 563.10 intraday, underperforming the BSE Sensex decline of 0.61%
- Citi maintained a Buy rating with a target price of Rs 750 based on FY28 earnings estimates
Kalyan Jewellers shares came under pressure again on Monday, raising questions over whether the stock's sharp rally is beginning to lose momentum despite the company's strong June quarter of FY27 business update and continued optimism from brokerages.
The stock fell as much as 2% to an intraday low of Rs 563.10 apiece. At 11:21 am, Kalyan Jewellers shares were trading 1.37% lower at Rs 566.80. By comparison, the BSE Sensex was down 0.61% at 77,680.
The decline comes after a volatile run over the past few sessions. The stock had rallied for six consecutive trading days before snapping the winning streak on Thursday. It rebounded on Friday, but returned to the red again on Monday.
Citi Remains Upbeat
Citi reiterated its 'Buy' rating on the stock with a target price of Rs 750 per share following the company's first-quarter business update.
The brokerage said its valuation is based on 40 times FY28 estimated consolidated earnings per share and continues to reflect a discount to sector leader Titan.
Robust Business Update
Kalyan Jewellers reported around 38% year-on-year consolidated revenue growth in the June quarter, with its India business delivering a similar expansion. The company said demand remained resilient despite the Adhik Maas period, which typically affects wedding-related jewellery purchases across several regions.
Same-store sales growth came in at around 28%, while the company's 'Shine With India' gold exchange programme continued to gain traction. Recycled gold contributed more than 46% of total revenue during the quarter and crossed 55% in June.
The international business posted nearly 35% year-on-year growth, with the Middle East operations expanding around 30% despite softer footfalls in April amid regional geopolitical uncertainties. Overseas markets accounted for nearly 14% of consolidated revenue during the quarter.
Its digital-first jewellery brand, Candere, delivered 112% year-on-year revenue growth, while the company expanded its retail footprint by opening 12 Kalyan showrooms and five Candere stores during the quarter. As of June 30, 2026, Kalyan Jewellers operated 524 showrooms globally.
The company said it remains confident about its growth outlook, supported by aggressive store expansion, new product launches, and demand from the upcoming festive and wedding seasons.
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