Stocks To Buy: UBS bets on this jewellery stock for up to 50% upside

Shares of Kalyan Jewellers India Ltd. will be in focus on Tuesday, September 15, after brokerage firm UBS initiated coverage on the jewellery retailer with a "Buy" rating and a target price of ₹900, the highest target among the 10 analysts covering the stock, according to the data.

The target implies an upside of nearly 50% from Kalyan Jewellers' closing price of ₹601.15 last Friday.

UBS said Kalyan Jewellers has emerged as a pan-India jeweller, broadly emulating Titan's footprint in terms of network expansion, while differentiating itself through its hyper-local value proposition.

Also read: Coforge shares in focus after FY27 guidance reaffirmed; Q2 may see record deal signings

Capital-light model supports expansion

The brokerage highlighted Kalyan Jewellers' franchise-owned, company-operated (FOCO) store model, saying the business model is now fully established and supporting an aggressive network rollout.

According to UBS, Kalyan's store network expansion is running at nearly twice the pace of market leader Titan. The brokerage noted that this expansion has helped revenue grow at a compound annual growth rate (CAGR) of around 35% between FY22 and FY26, among the highest rates in the organised jewellery sector.

UBS expects both Kalyan Jewellers' revenue and earnings to compound at around 23% annually over the next five years.

Despite the stock having risen around six-fold between FY22 and FY26, the brokerage said Kalyan Jewellers trades at around 30 times its estimated earnings for financial year 2028, representing a discount of roughly 45% to Titan. The brokerage expects this valuation gap to narrow as the company's growth continues.

Analyst view on Kalyan Jewellers

According to Bloomberg data, the broader analyst consensus is also positive on the stock. Nine of 10 analysts covering Kalyan Jewellers have given it a "Buy" rating, while one has a "Hold" recommendation. None among the 10 have a "sell" rating on the jeweller.

The 12-month consensus target price for Kalyan Jewellers is ₹765.56, implying an upside of around 27.3% from last Friday's closing price.

Shares of Kalyan Jewellers ended 1.9% lower at ₹601.15 on Friday. The stock has gained more than 24% so far in 2026 and around 19% over the last 12 months.