Kalyan Jewellers Shares Surge 47% in Just 4 Days—with a Further 10% Increase: Is Now the Time to Cash In?
Shares of Kalyan Jewellers have demonstrated robust performance recently, climbing 10% to reach Rs 522, marking a remarkable 47% increase over four consecutive trading sessions. This bullish trend follows the release of the company’s first-quarter business update, which revealed an estimated 38% year-on-year growth in consolidated revenue for Q1FY27. The strong operating momentum and impressive same-store sales growth across key Indian markets, particularly noteworthy given the unfavorable Adhik Maas period, reflect the resilience of Kalyan’s business model despite broader sector challenges.
Technical indicators further support the positive outlook for Kalyan Jewellers, as marked by a recent consolidation breakout seen on the weekly chart, bolstered by a surge in trading volumes. The Relative Strength Index (RSI) has risen above 60, suggesting strengthening bullish momentum, while the stock’s closure above the upper Bollinger Band signifies a continuation of its upward trend. Analysts recommend a cautious yet optimistic approach, advising traders to consider buying on dips, with a support zone established between Rs 425–430, which, if maintained, could preserve the bullish sentiment.
Analysts from Citi and ICICI Securities are maintaining a positive stance on Kalyan Jewellers, with target prices set at Rs 750 and Rs 670, respectively, indicating potential upsides of 58% and 41%. The favorable forecasts stem from the company’s franchise-led expansion strategy and asset-light model, which are expected to enhance revenue growth and improve return on capital employed (ROCE). Nevertheless, potential risks remain, particularly concerning fluctuations in natural diamond prices, which could disrupt market dynamics.
Looking ahead, investor sentiment will hinge on key factors such as management commentary, festive season demand, and the pace of store expansion. Despite entering FY27 amidst multiple challenges, including rising inflation, soaring oil prices, and increased customs duty on gold, the jewellery sector has exhibited an unexpected rally, driven by resilient consumer demand and strong quarterly performances. The forthcoming quarters will be critical in determining the sustainability of this momentum and the overall trajectory of Kalyan Jewellers’ stock performance.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)