The stock opened higher at ₹615.65 but soon declined sharply to hit the day’s low of ₹542.
Global brokerage firm Citi has maintained a ‘Buy’ rating on Kalyan Jewellers and raised its price target to ₹700.
Revenue grew 31% year-on-year (18% same-store sales growth in India), broadly in line with expectations.
EBITDA/PBT rose 35%/49% YoY, beating Citi’s estimates by 9%/14%, aided by better operating leverage, benefits from a pilot project, and gains in platinum and silver sales.
Management highlights:
a) Working on a pilot project, “lean credit procurement”, to drive higher margins and RoCE; if implemented company-wide, this will require a capital infusion of ₹1,500-2,000 crore.
b) Rolling out a new strategy of regional brands; plans to open five stores in one state over the next 12 months under the FoCo model.
c) Pausing further debt reduction, as the company will first look to realize and monetise real estate collateral with banks.
d) Demand trends and footfalls continue to remain strong.
“We have started off the ongoing quarter well despite continuing volatility in gold prices and a higher base. We are upbeat about the upcoming festive season across the country and are gearing up for the launch of fresh collections and campaigns,” said Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers India.
Out of the nine analysts that have coverage on Kalyan Jewellers, eight of them have a ‘Buy’ rating, while the other one has a ‘Sell’ recommendation.
Kalyan Jewellers shares are now trading 6.61% lower on Friday at ₹551.90. The stock has fallen 27% so far in 2025.
First Published: Aug 8, 2025 9:38 AM IST
