Kalyan Jewellers stock rallies over 12% to fresh high after Q2 results
Strong revenue growth and positive management commentary on festive and wedding-season demand also supported investor sentiment.
Kalyan Jewellers stocks surged more than 12% to a new peak on Wednesday following the company's impressive Q2 results. The retailer reported a 64% year-over-year jump in profits after tax to ₹427 crore for the September quarter of FY27. This positive financial performance, coupled with strong revenue growth and optimistic remarks on expected demand during the festive and wedding seasons, has bolstered investor confidence.
By 9:52 am, Kalyan Jewellers shares were trading at ₹684.60 on the NSE, up from the previous close of ₹611. The company's revenue from operations expanded by an impressive 32% to ₹10,323 crore in Q2 FY27, compared to ₹7,856 crore in the same period last year. Kalyan Jewellers India Executive Director Ramesh Kalyanaraman expressed optimism about the ongoing festive quarter, highlighting encouraging growth, particularly during Navratri and Dhanteras.
He further stated that the business outlook is promising, with strong expectations for the wedding season, aiming to conclude the quarter on a high note.
UBS has maintained its buy rating on Kalyan Jewellers, with a target price of ₹900. The brokerage firm anticipates robust festive and wedding demand to sustain growth, backed by robust same-store sales. UBS attributes the company's long-term growth and capital efficiency to franchise-led store expansion. The firm forecasts a 35% EPS compound annual growth rate (CAGR) over FY26–29, while identifying gold price volatility and franchise execution as key risks.
Similarly, HSBC has also retained its buy rating on the stock, with a target price of ₹770. The brokerage highlights strong demand during Navratri and Dhanteras as supporting evidence of a positive outlook for the festive quarter. However, HSBC notes that management remains optimistic about wedding-season demand, and expects a strong quarter-end. Nonetheless, HSBC points out that inventory gains and customs-duty benefits necessitate further clarity to accurately assess underlying profitability.
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