'Buy' Kalyan Jewellers Shares, Maintains Motilal Oswal Post Inline Q1 Revenue — Check Target Price
Management believes there is no pent-up demand likely to emerge from the recent moderation in gold prices, as weddings have not been postponed.
Motilal Oswal's report mentions that Kalyan Jewellers' new franchise businesses contribute to ~40% of the revenue, and its non-South expansion has improved the studded jewelry mix. The company's asset-light expansion model supports healthy cash flow generation and debt repayment.
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Motilal Oswal Report
With the successful scale-up of its new franchise businesses (~40 revenue contribution) and continued success in non-Southern markets, Kalyan Jewellers India Ltd. has established itself as a leading brand in the industry.
Its non-South expansion has improved the studded jewelry mix, while the asset-light expansion supports healthy cash flow generation for debt repayment and enhances profitability by reducing interest costs. It is also gaining momentum in the Middle East and the US.
We model 21%/17%/21% revenue/Ebitda/PAT CAGR over FY26-28E. We reiterate our Buy rating with a target price of Rs 700 (based on 50x Jun’27 P/E.
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