Kalyan Jewellers Rallies 34% in Three Days After Citi’s ₹750 Target—July 10

Kalyan Jewellers shares extended gains for a third consecutive session on July 10, climbing 9% to ₹472 and pushing the three-day rally to 34%. The jewellery retailer’s market capitalisation swelled by ₹11,500 crore to nearly ₹48,850 crore. Citigroup’s bullish stance and ₹750 price target reignited investor confidence after the stock had fallen 7% on Tuesday despite reporting robust 38% year-on-year revenue growth in the June quarter.

Why Citi’s call reversed the sell-off

Kalyan Jewellers fell 7% on Tuesday after reporting Q1 consolidated revenue growth of 38% year-on-year, below some analyst expectations. On Wednesday, Citigroup reaffirmed its Buy rating and maintained a ₹750 price target, implying 60% upside from Wednesday’s close. The brokerage acknowledged revenue fell slightly below estimates but said the miss did not alter its constructive long-term view. Investors responded by buying heavily, driving the stock up 5.5% on Wednesday and 18% on Thursday.

Strong growth across all business segments

Kalyan Jewellers’ India operations delivered 38% revenue growth, supported by same-store sales growth of 28% despite the 28-day Adhik Maas period, which typically dampens wedding demand. International revenue climbed 35% year-on-year, with the Middle East business growing 30%. The company’s digital-first Candere platform surged 112% year-on-year, emerging as the fastest-growing segment. International markets accounted for 14% of consolidated revenue during the quarter.

Franchise model and network expansion fuel confidence

Brokerages cited Kalyan’s asset-light franchise expansion strategy as a key driver of long-term growth. The company added 12 Kalyan showrooms and five Candere stores during Q1, with management expressing confidence about demand during the upcoming festive and wedding season. Analysts highlighted the model’s ability to add stores at scale while requiring lower capital than company-owned outlets. Motilal Oswal and ICICI Securities maintained Buy ratings, citing improving return on capital employed and accelerating Candere growth.

Headwinds overcome despite challenging quarter

Kalyan Jewellers achieved 38% growth despite soaring oil prices, inflation concerns, higher interest rate expectations, and a government push to curb gold purchases. Customs duties on gold rose to 15% from 6%, adding cost pressure. The company navigated these obstacles while the entire Adhik Maas period fell during Q1, a once-every-three-years seasonal headwind. This resilience convinced investors the company’s long-term growth story remains intact.

Final Thoughts

Kalyan Jewellers’ 34% three-day rally reflects renewed confidence in its franchise model and digital growth. With Citi targeting ₹750 and the stock now at ₹472, investors are betting on sustained momentum from festive season demand and Candere’s acceleration.

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