Citi has maintained a ‘Buy’ rating on Kalyan Jewellers, raising the target price to ₹700, indicating a 17% upside from the current market price of ₹598.10. The firm cited strong revenue and profit growth, along with margin expansion, as key positives.
For the quarter, revenue grew 31% YoY, including 18% same-store sales growth (SSSG) in India, aligning with estimates. EBITDA and PBT increased by 35% and 49% YoY, respectively, beating Citi estimates by 9% and 14%, driven by better operating leverage, pilot project efficiency, and gains from platinum and silver segments.
Kalyan is working on a pilot project titled “lean credit procurement” aimed at boosting margins and RoCE. If implemented across the company, it may require a capital infusion of ₹15,000–20,000 crore. Additionally, the company plans to launch regional brands, starting with five stores in one state over the next year under the FoCo model.
The management also indicated a pause in debt reduction efforts as it looks to monetize real estate collateral with banks. Footfalls and demand trends remain healthy, supporting the company’s growth trajectory.
Disclaimer:
The views expressed in this article are based solely on Citi’s analysis. This does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
