Kalyan Jewellers Shares Fall 13% From Day’s High Despite Strong Q1 Results: What Brokerage Firms Say?

Last Updated:August 08, 2025, 16:14 IST

Kalyan Jewellers Share Price Today: The stock falls despite the company reporting robust revenue growth of 31% YoY, led by 18% SSSG (same-store sales growth) growth in India.

Kalyan Jewellers Share Price.

Kalyan Jewellers Share Price Today: Shares of Kalyan Jewellers India Ltd, the Thrissur-headquartered jewellery company, tumbled 10.64% on Friday, August 8, despite registering gains in three of the past four trading sessions. The stock closed at 528.10, which is 10.64% as compared with the previous close.

The stock had opened higher at Rs 615.65 but soon reversed course to hit an intraday low of Rs 515.55, which is 12.75% lower than the previous close of Rs 590.95 and 16.3% down from the day’s high of Rs 616.

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Global brokerage Citi has reiterated its ‘Buy’ rating on the stock and raised its price target to Rs 700, citing solid financial performance. Revenue rose 31% year-on-year, with same-store sales growth in India at 18%, in line with expectations. More notably, EBITDA and PBT surged 35% and 49% YoY, respectively — exceeding Citi’s estimates by 9% and 14% — aided by improved operating leverage, a pilot project, and higher platinum and silver sales.

Kalyan Jewellers is currently working on a pilot initiative dubbed “lean credit procurement”, aimed at improving margins and return on capital employed (RoCE). If scaled across the company, it could require a capital infusion of Rs 1,500- Rs 2,000 crore, according to management commentary.

In addition, the company is:

• Rolling out a new regional branding strategy, planning to launch five stores within a single state over the next 12 months under the Franchisee-owned Company-operated (FoCo) model.
• Pausing further debt reduction in the near term, with a focus on monetising real estate collateral held with banks.
• Reporting strong demand trends and consistent footfalls across markets.

“We have started off the ongoing quarter well despite continuing volatility in gold prices and a higher base. We are upbeat about the upcoming festive season across the country and are gearing up for the launch of fresh collections and campaigns,” said Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers India.

Of the nine analysts covering the stock, eight have a ‘Buy’ rating, while one has a ‘Sell’ recommendation.

Brokerage JM Financial also gave a ‘buy’ call for the shares with a price target of Rs 700.

In its note, the brokerage said, “Kalyan reported robust revenue growth of 31% YoY, led by 18% SSSG (Same-Store Sales Growth.) growth in India. It added 10/1 Kalyan store in India/US and 8 Candere stores. India EBITDA was 10% above our estimates led by robust gross margins as (i) company implemented a pilot project of lean credit period to its vendors which resulted in higher margins/better RoCE and, (ii) inventory gains due to increase in prices of silver/platinum. Company is planning to launch new regional brands for every state to target the customers with regional taste and capture the pie from unorganised segment; 1st brand will be launched in CY25. It has temporarily paused the repayment of its debt obligation until release of its real estate collateral. Demand in Q2 remained until last week of June, post which the high base is optically leading to some YoY slowdown in growth, with growth again expected to pick in Q2 due to the festive season.”

Its steps towards lean credit policy is expected to drive profitability and improve RoCE, while the regional brand strategy is aimed at increasing the TAM; however, this would also lead an increase in the overall capital employed in the business. We largely maintain our EPS estimates as benefits of better margins gets negated by higher interest cost required for working capital requirement for the new pilot. Maintain BUY rating on the stock with an unchanged target price of INR 700, based on 45x June’27 EPS, JM Financial stated.

Business Desk

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