Kalyan Jewellers shares jump 5% after Jefferies starts coverage with 'Buy'. More upside after 63% rally in 1 month?
Shares of Kalyan Jewellers India rallied as much as 5% to their day’s high of Rs 629 on the BSE on Friday after Jefferies initiated
Shares of Kalyan Jewellers India rallied as much as 5% to their day’s high of Rs 629 on the BSE on Friday after Jefferies initiated coverage on the stock with a Buy call and a target price of Rs 830, forecasting an upside of 39% from current levels. With today’s surge, the stock is up over 60% in a month.The foreign brokerage said the company has built a differentiated growth engine by combining neighbourhood relevance with the scale of an organised retailer, a strategy that should continue to drive market share gains in the coming years.It also highlighted Kalyan's franchisee-led expansion model, which supports capital-efficient growth, particularly beyond South India. While the company has an international presence, Jefferies said India remains its core market. The brokerage also noted that Kalyan has a net cash balance sheet, backed by rising free cash flow and strong return ratios.“Weddings contribute 60% of jewellery demand in India, and Kalyan is well-aligned to tap this opportunity. The company has a dedicated Muhurat brand and also participates in an integrated wedding ecosystem through initiatives that support customer targeting, acquisition, & retention,” However, its presence extends beyond, with a portfolio of product brands catering to different needs & occasions,” the brokerage said in a note.
“The company has also recently unveiled a new regional brand, with plans to expand into more identified states to strengthen local connect and compete more effectively with regional players,” it added.Over FY26-29, Jefferies forecasts Kalyan to deliver 21-23% CAGR in revenue & earnings, driven by continued expansion in non-South alongside steady growth in the South. International ops, led by the Middle East, should remain stable, with LT upside potential from newer markets, and brands such as Candere & regional retail brands.Also read: Stocks to buy in 2026 for long term: DLF, BSE among 5 stocks that could give 10-40% returnKalyan Jewellers stock on chartsRuchit Jain, Vice President of Technical Research at Motilal Oswal, said the stock has recently seen an uptick supported by good volumes. The pullback move towards the 20 DEMA has witnessed buying interest and thus the near-term trend remains positive. The immediate support is placed around Rs 560 which remains a crucial level for the short term. On the higher side, a move above Rs 650 should lead to a momentum towards Rs 700-720.Virat Jagad, Technical Research Analyst at Bonanza, recommended traders buy around Rs 615-620 with a stop loss at Rs 560 and a target of over Rs 700.
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