Kalyan Jewellers Shares Jump 11% in Two Days; Citigroup Raises Target Price After Strong Rally

Shares of Kalyan Jewellers continued their strong upward momentum on Tuesday, extending gains for the second consecutive trading session. Around 10 AM, the stock surged 11.21% to ₹416.10, recovering sharply after witnessing a nearly 9% decline earlier this week.

The rally comes after the jewellery retailer reported robust first-quarter business performance and received a bullish outlook from global brokerage Citigroup, which has maintained its 'Buy' recommendation and assigned a target price of ₹750 per share.

Kalyan Jewellers Reports Strong Q1 Revenue Growth

Kalyan Jewellers announced an estimated 38% year-on-year growth in consolidated revenue for the first quarter of FY27.

The company credited the strong performance to:

Healthy demand across its core Indian markets

Robust same-store sales growth (SSSG)

Strong customer traction despite the impact of the 28-day Adhik Maas period, which traditionally affects jewellery demand

The positive business update boosted investor confidence and supported the stock's sharp recovery.

Citigroup Remains Bullish, Sets ₹750 Target

Global brokerage Citigroup has reaffirmed its positive stance on Kalyan Jewellers by maintaining a 'Buy' rating on the stock.

Key Highlights from Citi's Report

Target Price: ₹750 per share

Rating: Buy

Consolidated revenue growth: 38% YoY

India revenue growth: 38% YoY

Same-store sales growth (SSSG): 28%

Although Citi noted that quarterly revenue growth came in slightly below its expectations, the brokerage remains confident about the company's long-term growth trajectory.

Franchise Expansion Seen as Major Growth Driver

According to Citigroup, Kalyan Jewellers' aggressive franchise-led expansion strategy is expected to strengthen its business over the coming years.

The brokerage believes this model will help the company:

Expand its retail footprint faster

Improve profitability

Enhance Return on Capital Employed (RoCE)

Deliver stronger earnings growth over the long term

Why Kalyan Jewellers Shares Are Rising

The stock is witnessing strong buying interest due to a combination of factors:

Strong Q1 revenue growth

Healthy same-store sales performance

Positive brokerage commentary

Optimism surrounding future expansion plans

Improved investor sentiment in the jewellery retail sector

Market Outlook

With robust revenue growth, expanding retail operations, and continued support from leading brokerages, Kalyan Jewellers remains one of the closely watched jewellery stocks in the market.

Investors will now monitor the company's upcoming quarterly financial results, festive season demand, and execution of its expansion strategy to assess whether the current momentum can be sustained in the coming quarters.