ICICI Securities wrote in its note that a 35% correction in the stock price last year has provided a margin of safety, thereby leading to their upgrade.
It has maintained its earnings estimate for the company and expects it to deliver strong same store sales growth (SSSG) in the financial year 2026, supported by strong festive and wedding-led demand.
ICICI Securities reiterated its positive stance on the stock as it believes it may continue to outperform its peers on the back of:
- Aggressive store expansion through its asset-light franchise owned, company operated (FOCO) model.
- Adding growth levers from omni-channel format Candere.
- Improving balance sheet health through further debt reduction between ₹350 crore to ₹400 crore in the current financial year.
With steady demand trends despite elevated gold prices, coupled with an accelerating store rollout, ICICI Securities said it expects Kalyan Jewellers’ revenue momentum to remain strong going ahead.Kalyan Jewellers reported its provisional numbers for the second quarter on Monday. It expects consolidated revenue growth of around 30% in the September quarter.
Of the 10 analysts that have coverage on the stock, eight have a “buy” rating and one each have a “hold” and “sell” rating.
Shares of Kalyan Jewellers were trading 1.6% lower at ₹484.25 apiece around 2.50 pm. The stock has declined 37.8% this year, so far.
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