Kalyan Jewellers gets buy call from Citi, stock falls 

Shares of Kalyan Jewellers fell over 1.5% in the afternoon session on Thursday even as global brokerage firm Citi maintained a 'Buy' rating on the jewellery stock. The brokerage has a price target of Rs 650 per share, an upside of 25% to the previous close of Rs 519.15. 

Kalyan Jewellers continues to witness strong overall demand trends and plans to open 90 new stores in FY26, the brokerage said. 

While Candere, the company's internet division, might break even or earn a slight profit in the same fiscal year, the studded jewelry mix is anticipated to stay steady. Additionally, Citi pointed out that the average ticket size has increased by less than 10% despite a steep spike in gold prices, and that there is no significant price-based competition in the market.

An increasing customer base is primarily responsible for the improvement in same-store sales, and the company plans to pay off its debt of Rs 350 crore in FY26.

Kalyan Jewellers stock fell 1.70% to Rs 510.30 in the current session on BSE.  Market cap of the firm slipped to Rs 52,657 crore. Total 0.89 lakh shares of the firm changed hands amounting to a turnover of Rs 4.62 crore.  

Kalyan Jewellers shares have gained 20 per cent in one year and risen 284 per cent in two years. 

Kalyan Jewellers reported a year-on-year rise in net profit to Rs 187.6 crore. The Kerala-based jewellery maker reported a 36.6% YoY increase in revenue at Rs 6,181.5 crore.

For the quarter, Kalyan Jewellers' Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) registered an increase of 34.8% at Rs 399 crore. EBITDA margin fell 10 basis points YoY TO 6.5% from 6.6% last year. Kalyan Jewellers recommended a final dividend of Rs 1.50 per equity share for the financial year 2025.