Kalyan Jewellers continued its strong upward momentum for the third consecutive session on Friday. In early trade on July 10, the Kerala-based listed jewellery retailer's stock surged over 9 percent to hit an intraday high of ₹483.40 on the National Stock Exchange (NSE). The stock has delivered a remarkable 36 percent return within just three days.
This sharp rally has pushed the market capitalisation of Kalyan Jewellers past the ₹49,000 crore milestone. The company has added approximately ₹12,000 crore to its market value over the last three trading sessions alone.
Global brokerage firm Citi sparked the sharp rally after initiating coverage with a 'Buy' rating and a near-term target price of ₹750.
At the time of the recommendation, the stock was trading around ₹380, implying an upside potential of nearly 97 percent.
Citi cited several long-term growth drivers, including:
An asset-light franchise expansion model
Continued debt reduction efforts
Improving return on capital employed (ROCE)
The company reported 38 percent year-on-year revenue growth in the March quarter, driven by a 28 percent increase in same-store sales (SSSG).
Its online jewellery platform, Candere, posted an impressive 112 percent year-on-year revenue growth during the quarter.
The retailer expanded its footprint by opening 12 new Kalyan Jewellery showrooms and five Candere stores, taking its global network to 524 outlets.
Although the stock is fast approaching Citi's ₹750 target, a rally towards the ₹1,000 mark will depend on sustained business performance and supportive market conditions. Investors should watch the following factors closely:
Operating margins: The company's operating margin has remained in the 6-8 percent range, ending FY26 at around 7 percent. Maintaining or improving margins will be critical for further valuation gains.
Debt reduction: Finance costs stood at ₹433 crore in FY26. Continued debt reduction remains essential to improve profitability.
Shareholding pattern:
Promoter holding has increased to 62.86 percent from 60.55 percent in mid-2023.
Foreign institutional investors (FIIs) have reduced their stake from 27 percent to 14.6 percent.
Domestic institutional investors (DIIs) have steadily increased their exposure, reflecting strong domestic institutional confidence.
Organised jewellery retailers continue to benefit from the ongoing shift from the unorganised to the organised market. However, analysts believe demand during the upcoming festive and wedding season will be the key factor in determining whether the stock can sustain its momentum and move towards higher milestones.