Kalyan Jewellers Shares Surge 17%, Extend Rally to Second Day, After Robust Q1 Update

Mumbai, July 9: Kalyan Jewellers India share price jumped as much as 17% on Thursday, extending the rally to the second day, after investors cheered the company’s strong June-quarter business update and shrugged off an initial bout of selling seen earlier this week.

The stock climbed to an intraday high of ₹440 on the BSE after gaining over 6% in the previous session, emerging as one of the top performers among mid-cap stocks. The sharp rebound comes after the jewellery retailer reported healthy revenue growth across its domestic and international businesses, reinforcing confidence in its long-term growth story. As of writing the stock was up 16% at Rs 433.65.

Strong Q1 Business Momentum

Kalyan Jewellers reported an approximately 38% year-on-year increase in consolidated revenue for the April-June quarter, supported by robust demand in India and healthy growth in its overseas operations.

The stock is jumping as investors cheer business update. Source: NSE

The company said its India business delivered strong momentum despite the entire 28-day Adhik Maas period falling during the quarter. Considered inauspicious for weddings in several parts of the country, Adhik Maas typically dampens jewellery purchases. Even so, Kalyan recorded healthy same-store sales growth, underscoring resilient consumer demand.

The international business also remained resilient, with revenue rising about 35% year-on-year. Although geopolitical tensions weighed on customer footfalls in the Middle East during April, demand recovered as the quarter progressed. Overseas operations contributed around 14% of consolidated revenue during the quarter.

Candere Continues to Outperform

The company’s digital-first jewellery platform Candere remained the fastest-growing segment of the business.

Candere posted a 112% year-on-year increase in revenue during the quarter as the company continued expanding its omnichannel presence. Kalyan opened 12 Kalyan showrooms and five Candere outlets in India during the quarter.

The jeweller also said its “Shine with India” gold recirculation campaign gained traction during the quarter, increasing the share of recycled gold in its business and reducing dependence on imported bullion.

Why the Stock is Rebounding

The rally marks a dramatic turnaround from Tuesday, when the stock had slumped nearly 9% despite reporting strong operational performance.

The initial decline was largely attributed to lofty investor expectations and comparisons with rival Titan Company, which posted even stronger growth numbers for the quarter. However, bargain buying, attractive valuations after the correction and confidence in Kalyan’s expansion strategy helped the stock recover sharply over the last two sessions.

Analysts noted that the company continues to gain market share through aggressive showroom expansion, franchise-led growth and improving operational efficiencies.

Brokerages Remain Constructive

Brokerage sentiment has also turned increasingly positive following the business update.

Brokers reiterated ‘Buy’ rating on the stock, saying Kalyan’s long-term growth drivers remain intact despite June-quarter revenue growth coming in slightly below estimates. The brokerages expect the company’s asset-light franchise model to support faster deleveraging, improve return on capital employed and sustain earnings growth over the medium term.

Market participants are also optimistic about demand heading into the festive and wedding season, traditionally the strongest period for jewellery retailers.

Outlook Remains Positive

India’s organised jewellery retailers have continued to report healthy demand despite elevated gold prices, supported by premiumisation, rising disposable incomes and a gradual shift from unorganised to organised players.

Kalyan Jewellers said the current quarter has begun on a positive note and expressed confidence about upcoming showroom launches, new collections and festive demand. The company’s strong execution, expanding retail footprint and healthy same-store sales have reinforced investor confidence after a volatile start to the week.

Source:

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