3 weeks ago
Jefferies sees 40% upside in Kalyan Jewellers shares
Kalyan Jewellers is a big company that makes and sells gold and diamond jewellery.
A company called Jefferies, which studies stocks to help people decide what to buy, thinks Kalyan Jewellers is a very good business.
Jefferies believes the company's shares could go up by 40 percent in value.
The shares have already risen 58 percent in just one month.
Kalyan also made more money recently — its profit went up by 32 percent compared with the same time last year, and sales money went up by nearly 46 percent.
Most experts who watch this company think its shares are a good buy, with eight out of nine analysts saying 'Buy' and one saying 'Hold'.
However, the company's profit margin got a little smaller, from 7 percent to 6 percent, because its costs went up.
That means that while things look good for Kalyan Jewellers, the company still needs to keep an eye on its costs.
Jefferies says India will remain the company's biggest growth area even though Kalyan Jewellers also operates around the world.
Jefferies sees 40% upside in Kalyan Jewellers shares, calling it a 'differentiated growth engine' and expecting 21-23% CAGR in revenue and earnings between FY26 and FY29.
The stock rose 58% in a month and 44% in three months, ending the previous session 5.28% higher at Rs 598 on BSE.
Kalyan Jewellers' market capitalisation rose to Rs 61,757 crore, with 16.24 lakh shares traded for a turnover of Rs 94.17 crore.
Eight of the nine analysts covering the stock have a 'Buy' rating and one recommends 'Hold', according to Bloomberg data.
For the June quarter, consolidated net profit rose 32% year-on-year to Rs 348.7 crore, revenue jumped 45.7% to Rs 10,588.9 crore, while EBITDA margin narrowed to 6% from 7%.
- Who
- Kalyan Jewellers, the listed jewellery retailer, and Jefferies, the brokerage issuing the bullish call, along with the nine analysts covering the stock.
- What
- Jefferies sees 40% upside in Kalyan Jewellers shares, while the company reported strong June-quarter results with net profit up 32% and revenue up 45.7% year-on-year.
- Where
- India — the stock trades on BSE, and Jefferies says India will remain Kalyan's primary growth driver despite its global presence.
- When
- Reported in the previous trading session; the financial results are for the June quarter, shortly after the stock's sharp gains over the past one to three months.
- Why
- Robust jewellery demand, healthy sales growth and a 'differentiated growth engine', which Jefferies expects to drive 21-23% CAGR in revenue and earnings between FY26 and FY29.
Key facts
- Brokerage call
- Jefferies sees 40% upside, bullish on 'differentiated growth engine'
- Stock gain (1 month)
- 58%
- Previous session close
- Rs 598, up 5.28% on BSE
- Market capitalisation
- Rs 61,757 crore
- Q1 net profit
- Rs 348.7 crore, up 32% YoY
- Q1 revenue
- Rs 10,588.9 crore, up 45.7% YoY
- Q1 EBITDA
- Rs 632.5 crore; margin 6% vs 7% a year earlier
- Analyst ratings
- 8 Buy, 1 Hold out of 9 analysts (Bloomberg)











