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Citi Reiterates Buy Rating on Kalyan Jewellers Sees Significant Upside Despite Softer June Quarter Growth
Shares of Kalyan Jewellers India are expected to remain in focus after Citigroup reaffirmed its Buy rating on the company with a target price of Rs 750 per share. While the brokerage noted that June-quarter revenue growth came in below its expectations, it maintained a positive long-term outlook, citing the company's franchise-led expansion strategy, strong same-store sales, and robust growth across its Candere and international businesses.
By Finblage Editorial Desk
8:45 am
8 July 2026
Kalyan Jewellers India is likely to remain on investors' radar after global brokerage Citigroup reaffirmed its Buy recommendation on the jewellery retailer, maintaining a target price of Rs 750 per share. Based on the previous closing price of Rs 354.75, the target suggests a potential upside of more than 100 percent.
The brokerage acknowledged that the company's June-quarter business update was slightly weaker than its expectations, with consolidated revenue increasing 38 percent year-on-year. Revenue from the domestic business also grew 38 percent during the quarter, supported by healthy same-store sales growth of 28 percent.
Despite the modest miss, Citi remains optimistic about the company's long-term growth prospects. The brokerage believes Kalyan Jewellers' franchise-led expansion model will continue to drive store additions while improving return on capital employed, as the asset-light approach requires significantly lower capital investment compared with company-owned outlets.
The brokerage also highlighted the strong performance of Candere, the company's digital-first jewellery brand, which reported a 112 percent year-on-year increase in revenue during the quarter. Kalyan Jewellers further expanded the brand's retail presence by opening five new Candere stores, strengthening its omnichannel strategy.
International operations also delivered healthy growth, with revenue rising approximately 35 percent year-on-year. The West Asia business recorded around 30 percent growth, while overseas markets contributed nearly 14 percent to the company's consolidated revenue during the quarter.
The company said it has entered the second quarter on a positive note, supported by healthy consumer demand ahead of the festive and wedding season, which is expected to provide further momentum to sales.
Despite the strong operational performance, Kalyan Jewellers' shares declined nearly 7 percent in the previous trading session as investors reacted to revenue growth that fell short of some market expectations. The stock has also underperformed the broader market in 2026, declining around 26 percent so far this year compared with a decline of about 6.7 percent in the Nifty 50.
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