Stock to Buy: Financially Strong Stock With 111% Upside Recommended by Citi

Synopsis: Citi maintained a Buy rating on Kalyan Jewellers with a ₹750 target price, implying an 111.33% upside, supported by strong expansion, Candere’s growth, and long-term prospects.

This Mid-Cap Jewellery Stock, engaged in the retail and sale of gold, diamond, platinum, silver, and precious stone jewellery through its stores and digital platforms, jumped 6.42 percent after Citi gave a buy target of Rs. 750, which has an upside potential of 111.33 percent.

With a market capitalization of Rs. 38,288.84 crores, the share of Kalyan Jewellers India Limited has reached an intraday high of Rs. 386.30 per equity share, rising nearly 8.84 percent from its previous day’s close price of Rs. 354.90. Since then, the stock has retreated and closed at Rs. 374.35 per equity share. 

Reason Behind the Surge:

Citi, a prominent brokerage firm, has recommended a “Buy” call on Kalyan Jewellers India Limited with a target price of Rs. 750 per share, indicating an upside potential of 111.33 percent from its previous day’s close price of Rs. 354.90 per share. 

Citi has maintained its Buy rating on Kalyan Jewellers despite the company reporting June quarter revenue growth that was slightly below its expectations. The company posted 38 percent year-on-year consolidated revenue growth, with its India business also growing 38 percent, supported by a strong 28 percent same-store sales growth (SSSG). Although the quarterly performance missed some estimates, Citi believes the overall business trend remains healthy.

The brokerage’s positive view is based on Kalyan Jewellers’ franchise-led expansion strategy, which allows the company to open more stores with lower capital investment. This asset-light model is expected to improve return on capital employed (RoCE) while supporting faster expansion. Citi also highlighted the strong performance of Candere, whose revenue jumped 112 percent year-on-year, along with the addition of five new stores.

International operations also remained strong, with revenue growing about 35 percent, while West Asia recorded around 30 percent growth and contributed 14 percent of total revenue. Citi believes strong festive and wedding season demand, combined with expansion across India and overseas, supports the company’s long-term growth outlook, making the recent share price correction an attractive opportunity for investors.

Company Update (Q1 FY27):

Kalyan Jewellers reported a strong start to FY27, with consolidated revenue rising 38 percent year-on-year in the June quarter. Its India business also grew by over 38 percent, driven by healthy customer demand and strong same-store sales growth. The company achieved this despite the Adhik Maas period, which usually impacts wedding jewellery purchases. It also launched the “Shine with India” campaign to promote the use of recycled gold.

The campaign received a good response, with recycled gold contributing over 46 percent of quarterly revenue and more than 55 percent in June. The company’s international business grew 35 percent, while its Middle East operations recorded 30 percent growth. Digital jewellery platform Candere also delivered a strong performance, with revenue increasing 112 percent compared to the same quarter last year.

Retail Network and Showrooms:

Kalyan Jewellers India Limited strengthened its retail presence by opening 12 Kalyan showrooms and 5 Candere showrooms across India. As of June 30, 2026, the company operated 524 showrooms globally, including 354 in India, 38 in the Middle East, 2 in the US, 1 in the UK, and 129 Candere stores. Backed by its expanding store network and the upcoming festive and wedding season, the company remains confident about maintaining strong growth momentum.

Company Overview:

Kalyan Jewellers India Limited is one of India’s leading jewellery retail chains, offering a wide range of gold, diamond, platinum, and silver jewellery. Founded in 1993 and headquartered in Thrissur, Kerala, the company operates an extensive network of showrooms across India and international markets, including the Middle East, the US, and the UK. It also owns the digital-first jewellery brand Candere, strengthening its presence in the online jewellery segment.

Recent Quarter Results:

Coming into financial highlights, Kalyan Jewellers India Limited’s revenue has increased from Rs. 6,182 crore in Q4 FY25 to Rs. 10,275 crore in Q4 FY26, which has grown by 66.21 percent. The net profit has also grown by 118.09 percent from Rs. 188 crore in Q4 FY25 to Rs. 410 crore in Q4 FY26.

Kalyan Jewellers India Limited’s revenue and net profit have grown at a CAGR of 33 percent and 195 percent, respectively, over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 20.5 percent and 24.8 percent, respectively. Kalyan Jewellers India Limited has an earnings per share (EPS) of Rs. 13.1, and its debt-to-equity ratio is 0.97x.

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