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.