Kalyan Jewellers Share Rises 9% As Rally Continues After Business Update

Mumbai, July 13: Kalyan Jewellers India share price rose as much as 9% on Monday, extending its winning streak. The stock has emerged as one of the market’s top performers after the company’s stronger-than-expected June-quarter business update reignited investor confidence and prompted a series of bullish brokerage calls.  

The sharp rally has also lifted the company’s market capitalisation, with investors betting that strong operational momentum and aggressive store expansion will continue to support earnings growth. However, after such a steep run-up in a short span, market participants are increasingly debating whether it is time to book profits or remain invested for further upside. As of writing the stock was up 9.3% at Rs 520.35. Over the week, it has risen 36%. 

What sparked the rally? 

The trigger for the rally was Kalyan Jewellers’ robust business update for the June quarter, which surprised the Street despite a challenging operating environment that included the 28-day Adhik Maas period, traditionally considered inauspicious for jewellery purchases.

The stock keeps on climbing as investors feel confident about the company’s future. Source: NSE 

The company reported 38% year-on-year growth in consolidated revenue during the April-June quarter. Its India business also recorded 38% revenue growth, supported by an impressive 28% same-store sales growth, indicating healthy underlying demand across key markets. International operations grew about 35%, while its West Asia business expanded nearly 30%. The overseas business contributed around 14% of consolidated revenue during the quarter.

Another standout performer was Candere, Kalyan’s digital-first jewellery platform, which delivered a stellar 112% year-on-year increase in revenue, strengthening the company’s omnichannel growth story. During the quarter, the retailer also expanded its footprint by opening 12 Kalyan showrooms and five Candere stores, taking its total network to 524 outlets.  

Brokerages remain bullish 

The strong business update triggered a wave of optimism among brokerages, reiterating ‘Buy’ rating on the stock. Although the brokerages noted that revenue growth came in slightly below estimates, they retained a constructive long-term view, citing the company’s franchise-led expansion strategy, improving profitability and rising return on capital employed (RoCE).  

The brokerages also highlighted Candere’s rapid growth as an additional long-term value driver, while continued showroom expansion and healthy same-store sales are expected to support earnings momentum in the coming quarters. Analysts believe the company is well placed to benefit from robust demand during the upcoming festive and wedding season.  

Despite the bullish fundamental outlook, technical analysts are advising caution after the stock’s near-vertical rise. 

According to the analysts, investors with a short-term trading horizon may consider partial profit booking, as the stock has entered overbought territory. Such sharp moves are often followed by consolidation or temporary pullbacks, even when the long-term outlook remains favourable.  

However, the broader consensus remains constructive for long-term investors. Analysts believe that those with a longer investment horizon can continue holding the stock, supported by strong operational performance, expanding market share, improving profitability and sustained execution of its store expansion strategy. Any correction after the recent rally could present fresh buying opportunities rather than signalling a reversal in the company’s growth trajectory.  

What should investors watch?

Going forward, investors will closely monitor Kalyan Jewellers’ June-quarter earnings for confirmation that the strong business update translates into robust profitability. Commentary on demand trends, margins, store additions and festive season outlook will also be key triggers. 

The company’s ability to sustain high same-store sales growth, scale up the fast-growing Candere business and execute its expansion plans efficiently will determine whether the stock can justify its recent re-rating. While momentum remains firmly in the bulls’ favour, valuation concerns may emerge if earnings fail to keep pace with the rapid appreciation in the share price. 

Source

• https://www.nseindia.com/get-quote/equity/KALYANKJIL/Kalyan-Jewellers-India-Limited