Kalyan Jewellers India Ltd., one of India’s largest jewelry retailers, may be witnessing strong business momentum — but the stock is currently struggling on Dalal Street.
As of Thursday, June 19, the stock was trading 1.07% lower at ₹514.35, having corrected nearly 35% from its January 2025 high of ₹795.40. Year-to-date, the stock is down 34%, despite upbeat earnings and an aggressive expansion roadmap.
📊 Citi Maintains ‘Buy’ Rating — Sees ₹650 Target
Global brokerage Citi has reiterated a ‘Buy’ rating on the stock, setting a target price of ₹650, implying over 25% upside from current levels.
In its latest research note, Citi highlighted:
- Robust demand trends continue across the jewelry segment
- 90 new stores are planned in FY26, indicating strong growth confidence
- Online arm Candere could turn profitable or break even this fiscal
- Studded jewelry mix remains stable, aiding margins
- No significant price-based competition, despite high gold prices
- Average ticket size has increased by <10%, suggesting pricing discipline
💰 Financial Highlights: Solid March Quarter Performance
Kalyan Jewellers reported a strong Q4 FY25, with both revenue and profit rising sharply:
| Metric | Q4 FY25 | YoY Change |
|---|---|---|
| Revenue | ₹6,181.5 crore | 🔼 36.6% |
| Net Profit | ₹187.6 crore | 🔼 36.5% |
| EBITDA | ₹399 crore | 🔼 34.8% |
| EBITDA Margin | 6.5% | 🔽 10 bps YoY |
Despite the slight margin dip, the company’s bottom-line growth remains healthy, underpinned by rising same-store sales, largely driven by customer base expansion, not just ticket size inflation.
Kalyan has also proposed a final dividend of ₹1.50 per share for FY25, rewarding shareholders even as it works to reduce its ₹350 crore debt in FY26.
🧭 Outlook: Opportunity Amid Correction?
While the stock has seen a steep decline from its highs, Kalyan Jewellers’ fundamentals remain strong, with:
- Clear growth visibility
- Solid financial performance
- Focused debt reduction
- Expanding omnichannel presence
The recent correction may reflect broader market volatility or profit-booking, rather than business weakness. For long-term investors, this could be an opportunity to accumulate on dips, especially with strong institutional backing and analyst support.
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