Citi has reiterated its ‘Buy’ rating on Kalyan Jewellers with a target price of ₹810/share, reflecting a potential upside of 12.6% from the current market price (CMP) of ₹719.30.
Key Highlights:
- Strong Revenue Growth:
- Reported 41% year-on-year (YoY) revenue growth in Q3FY25, driven by ~24% same-store sales growth (SSG) and the addition of 24 new ‘Kalyan’ stores.
- Adjusted revenue growth, excluding initial sales from new franchise stores, was 34% YoY.
- Aggressive Expansion Plans:
- Q4FY25E: Management plans to open 30 ‘Kalyan’ stores and 15 ‘Candere’ stores in India.
- FY26E: Expansion includes 90 ‘Kalyan’ stores (75 in non-south regions, 15 in south and international markets) and 80 ‘Candere’ stores in India.
- Growth Momentum:
- The company’s robust growth trajectory is supported by aggressive market penetration and a strong operational focus, making it a standout player in the jewellery retail sector.
Outlook:
Citi remains optimistic about Kalyan Jewellers’ ability to sustain its growth momentum through same-store sales growth and strategic expansion. With clear plans for market penetration and strong revenue performance, the company is well-positioned for continued success.
Disclaimer: The above analysis is based on provided data and is for informational purposes only. It does not constitute financial advice. Readers should consult their financial advisors before making investment decisions.
