Why Is Kalyan Jewellers Rising Today? Kerala-Based Company's Shares Surge Over 15%

Why Is Kalyan Jewellers Rising Today? Shares of Kerala-based jewellery retailer Kalyan Jewellers India Ltd rallied 16.73 per cent in early trade on Thursday, July 9, extending gains from the previous session after global brokerage Citi turned more bullish on the stock following the company’s June-quarter business update.

As of 12:20 pm, Kalyan Jewellers’ shares were trading 16.67% higher at Rs 436.60, compared with the previous close of Rs 374.15 apiece.

Why are Kalyan Jewellers shares rising?

The stock surged on Thursday after Citi double-upgraded the stock to a ‘Buy’ rating and assigned a target price of Rs 750, implying a potential upside of nearly 97% from Thursday’s opening price of around Rs 380.

The brokerage’s optimism follows the company’s strong operational performance during

the first quarter of FY27. According to Kalyan Jewellers’ business update, consolidated revenue grew around 38% year-on-year, supported by robust demand in India. The company reported same-store sales growth of around 28% across key domestic markets, reflecting healthy customer spending despite a high base.

Although the quarterly revenue growth came in below Citi’s estimate of 45%, the brokerage remained positive on the company’s long-term growth prospects.

Citi sees strong long-term growth

Citi believes Kalyan Jewellers is well placed to benefit from its franchise-led expansion strategy, which could support sustained revenue growth while improving capital efficiency. The brokerage also expects the company to strengthen its balance sheet through gradual deleveraging and deliver better return on capital employed (RoCE) over time.

International business remains strong

Kalyan Jewellers’ overseas operations also posted healthy growth during the quarter. The company said its international business grew around 35% year-on-year, with the Middle East recording nearly 30% revenue growth, driven largely by same-store sales despite geopolitical tensions in the region.

International operations accounted for around 14% of the company’s consolidated revenue during the quarter. The company did not add any new international stores during the April-June period.

Candere delivers triple-digit growth

The company’s digital-first jewellery platform, Candere, continued to witness strong momentum. Candere reported around 112% year-on-year revenue growth during the first quarter. During the quarter, Kalyan Jewellers also expanded its retail network by opening 12 Kalyan showrooms and five Candere showrooms across India.

Management outlook

The company said it entered the second quarter on a positive note, supported by healthy consumer demand ahead of the festive and wedding season.

Risks highlighted by Citi

While maintaining its bullish stance, Citi highlighted a few key risks that investors should monitor. These include slower revenue growth in India compared with Titan for the first time in the last 13 quarters, any slowdown in jewellery demand, delay in balance sheet deleveraging, and any deviation from the company’s asset-light, franchise-led expansion strategy.