Kalyan Jewellers shares: Jefferies sees 40% upside, bullish on 'differentiated growth engine'

Shares of Kalyan Jewellers have received a buy call from global brokerage Jefferies. The jewellery chain is creating a differentiated growth engine that drives share gains, a trend that should continue in coming years, according to the brokerage. The brokerage has a fixed a price target of Rs 830, a 40% upside from Thursday's closing price.

Initiating coverage with a buy call, Jefferies said Kalyan combines neighbourhood relevance with organised scale. The jewellery chain has a differentiated franchisee-led model that supports capital efficiency & rapid expansion, especially beyond South India.

Meanwhile, Kalyan Jewellers stock has risen 58% in a month. It has gained 44% in three months. 
In the previous session, the jewellery player's stock ended 5.28% higher at Rs 598 on BSE. Market cap of the firm rose to Rs 61,757 crore. 
Total 16.24 lakh shares of the firm changed hands amounting to a turnover of Rs 94.17 crore.

While Kalyan has a global presence, Jefferies said India will remain the company's primary growth driver.

Jefferies expects revenue and earnings to clcok a CAGR of 21-23% between FY26 and FY29. Despite this, the brokerage values the jewellery stock at 38 times September 2028 estimated earnings, representing a nearly 30% discount to Titan.

Eight of the nine analysts covering Kalyan Jewellers have a 'Buy' rating on the jewellery stock, while one recommends 'Hold', according to Bloomberg data.

Kalyan Jewellers reported a 32 percent year-on-year increase in consolidated net profit to Rs 348.7 crore for the June quarter, while revenue from operations rose 45.7 percent to Rs 10,588.9 crore. EBITDA increased 24.5 percent to Rs 632.5 crore, although the EBITDA margin narrowed to 6 percent from 7 percent a year earlier, reflecting higher costs and a less favourable operating mix.

Kalyan Jewellers' net profit rose 32% year-on-year to Rs 348.7 crore, led by robust sales growth across its jewellery business. Revenue from operations surged 45.7% to Rs 10,588.9 crore, signaling healthy demand and continued expansion.