Citi sees Kalyan Jewellers doubling with Rs 750 target after strong Q1 update
Kalyan Jewellers rose 6% after Citi reiterated 'buy' with a Rs 750 target implying 108% upside. Q1 saw ~38% revenue growth, 28% India same-store-sales growth, and Candere revenue up 112%. International revenue rose 35% to 14% of consolidated sales, with 17 new showrooms added.
What happened
Kalyan Jewellers shares rose 6% after Citi reiterated 'buy' with Rs 750 target (108% upside) on Q1 update; 38% revenue growth, 28% India SSSG, Candere up 112%,
Key facts
- share up 6.4% to Rs 377.7
- Citi target Rs 750
- 108% upside
- revenue growth ~38% YoY
- 28% same-store-sales-growth India
- international revenue +35%
- international 14% of consolidated revenue
- Middle East revenue +30%
- Candere revenue +112%
- 12 Kalyan showrooms + 5 Candere showrooms added
Why this matters
International revenue up 35% to 14% of sales plus rapid Candere scaling signals ripe conditions for regional partnerships or bolt-on acquisitions to accelerate the online-jewellery footprint.
What to watch
- Q2 SSSG print vs the 28% India base — deceleration is the key risk flag
- Gross margin trend against volatile gold prices
- Candere growth sustainability beyond 100% (base effect)
- International revenue mix crossing 15% and unit economics of new stores
- Working capital / inventory days given rapid showroom rollout
- Peer brokerages (Motilal, Jefferies) likely to revisit targets, amplifying or challenging Citi's call
- Kalyan management to guide on FY showroom addition pace and Candere online scaling
- Competitors (Titan/Tanishq, Senco) messaging on SSSG to benchmark relative momentum
- Promoter/institutional shareholding disclosures scrutinized for pledge or dilution