Kalyan Jewellers
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Kalyan Jewellers is navigating a robust demand environment, bolstered by strategic initiatives such as the 'Shine with India' program aimed at enhancing gold recirculation and the introduction of the 'ATM' brand to capture market share from unorganised players. Management's pivot towards a capital-light FOCO model is expected to drive operational efficiencies and improve return ratios, despite facing short-term margin pressures from increased employee costs and a higher mix of recycled gold. Vista's financial outlook reflects a projected revenue growth of 21.3% over the next 12 months, supported by aggressive store expansion and a strong same-store sales growth trajectory. The jewellery sector's resilience, driven by sustained wedding demand and improving pricing power, further underpins Kalyan's growth prospects. However, potential headwinds include margin compression from recycled gold and demand volatility in the discretionary segment. Over the next 12-24 months, key opportunities lie in expanding the Candere e-commerce platform and leveraging the FOCO model for accelerated growth, while watchpoints include execution risks associated with aggressive expansion plans and fluctuating gold prices
Why We Like This Stock
- Strong revenue growth driven by robust wedding demand and aggressive store expansion
- Successful transition to a capital-light FOCO model enhancing operational efficiencies
- Strategic initiatives like 'Shine with India' and 'ATM' brand launch to capture market share
Things To Watch Out For
- Short-term margin pressures from increased employee costs and a higher mix of recycled gold
- Potential demand volatility in the discretionary jewellery segment
- Execution risks associated with aggressive expansion plans and supply-side disruptions
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 18,548 | 25,045 | 35,743 | 38,953 | 47,439 |
| Profit Before Tax (Cr.) | 788 | 964 | 1,844 | 2,065 | 2,525 |
| PBT Margin | 4.2% | 3.8% | 515.9% | 5.3% | 5.3% |
| Net Profit (Cr.) | 589 | 661 | 1,233 | 1,382 | 1,690 |
| Earnings Per Share | 5.7 | 6.4 | 11.9 | 13.4 | 16.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BOB Capital Markets | ▲ Buy | 490 | 09-May-2026 |
| Citigroup | ▲ Buy | 800 | 05-Aug-2026 |
| ICICI Securities | ▲ Buy | 680 | 05-Aug-2026 |
| JMFinancials | ▲ Buy | 600 | 15-May-2026 |
| Jeffries | ▲ Buy | 830 | 07-Aug-2026 |
Company Overview
Show Company Profile
Kalyan Jewellers India Limited, together with its subsidiaries, engages in the manufacture and retail of various gold and precious stone studded jewelry products. It offers gold, diamond, silver, platinum, gemstone, and white and rose gold jewelries, including wedding, staple regional, aspirational, studded, and other jewelries. The company also provides chains, necklaces, bangles, bracelets, nose studs, choker, jewelry, and moti sets, daily wear, vaddanam, rings, earrings, pendants, anklets, pearls, studs, jhumka, lockets, harams, kadas, payals, and second studs. It offers its products under MUDHRA, NIMAH, ANOKHI, RANG, TEJASVI, ZIAH, LAYA, GLO, CANDERE, VEDHA, APOORVA, HERA, and MUHURAT brand names. In addition, the company operates showrooms in India and the Middle East, as well as My Kalyan Grassroots stores. Further, it sells its products through an online platform, candere.com. Kalyan Jewellers India Limited was founded in 1993 and is headquartered in Thrissur, India.