Kalyan Jewellers India Limited experienced a remarkable surge in its share price, climbing 10% to hit an upper circuit limit of Rs 523.85 on the BSE. This Monday's performance capped a four-day winning streak, during which the stock rallied an impressive 47.66% from its July 7 closing price of Rs 354.75.
Brokerages Maintain Bullish Outlook
The sharp upward movement in Kalyan Jewellers shares comes after several leading brokerages reiterated their bullish stance on the jewellery retailer. This renewed confidence follows the company's robust business update for the June quarter (Q1 FY27).
- Foreign brokerage Citi maintained its 'Buy' rating with an ambitious target price of Rs 750.
- Axis Capital also upheld its 'Buy' call, setting a target price of Rs 700.
- ICICI Securities sees the stock valued at Rs 670, increasing its EPS estimates for Kalyan to reflect improved revenue growth in Q1 FY27.
- MOFSL had set a target of Rs 525, a level the scrip was on the verge of surpassing.
Strong Q1 FY27 Business Performance Fuels Growth
Kalyan Jewellers reported a strong operational performance for the first quarter of fiscal year 2027. The company's domestic jewellery revenue witnessed a significant 38% year-on-year growth, underpinned by a healthy 28% same-store sales growth (SSSG). During Q1 FY27, Kalyan expanded its retail footprint by adding 12 new Kalyan showrooms and 5 Candere showrooms across India, bringing its total showroom count to 524.
Digital Platform and International Business Thrive
The company's digital-first platform, Candere, continued its strong momentum, recording an impressive 112% year-on-year revenue growth. Kalyan's international business, which includes operations in the Middle East, USA, and UK, grew approximately 35% year-on-year and contributed 14% to the consolidated revenue. Specifically within the Middle East, revenue increased by 30% year-on-year, despite facing lower footfalls in April 2026 due to geopolitical tensions, as noted by ICICI Securities.
Technical Indicators Signal Continued Bullish Trend
From a technical analysis perspective, Muthuselvaraj M, Research Analyst at Mirae Asset Sharekhan, highlighted that Kalyan Jewellers has broken out of its falling channel on the daily timeframe, following a strong bounce from the demand zone at Rs 325. This rebound occurred after a 45% correction since August 8, 2025.
"The price is now trading above its 200-day exponential moving average, suggesting a potential rally toward Rs 530–554 in the short to medium term. Both daily and weekly momentum indicators exhibit strong positive sentiment; therefore, we expect the bullish trend to continue in the short to medium term," he stated.
ICICI Securities projects a revenue/EBITDA/PAT CAGR of 19/16/24 per cent over FY26-28E for Kalyan Jewellers, maintaining their 'BUY' rating with a DCF-based target price of Rs 670. Key risks identified include potential delays in showroom expansion and increased competitive intensity within core South Indian markets.