Kalyan Jewellers Shares Rise 2.5% as UBS Retains ₹900 Target Price

Kalyan Jewellers India shares gained 2.5% in early trade on Tuesday, September 29, putting the jewellery retailer among the leading midcap gainers even as the broader market traded lower.  CTA Code:

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The stock was trading at ₹578 in early deals. Its gains for 2026 stood at around 19%, while the Nifty 50 had fallen 13.3% over the same period. Kalyan Jewellers’ market capitalisation was around ₹59,600 crore. 

The broader market was under pressure during the morning session. At 9:23 am, the Sensex was down 379 points, or 0.52%, at 72,392, while the Nifty was trading 106 points lower at 22,675. 

UBS Retains ₹900 Target Price 

The movement in Kalyan Jewellers shares followed a fresh note from UBS, which retained its ‘Buy’ rating and ₹900 target price on the stock. According to the report, the target represented an upside of around 60% from the previous closing price. 

The brokerage’s latest assessment followed an interaction with the company’s management and pointed to expectations of stronger growth during the second half of the financial year, despite a high base. 

Gold prices continue to affect demand and average purchase values differently across customer groups. At the same time, Kalyan Jewellers plans to continue expanding its store network. 

The company’s gold savings schemes were another area highlighted in the brokerage’s assessment, as they provide greater visibility on same-store growth. Gold exchange activity is also expected to remain elevated, with the company looking to manage the impact on margins. 

Store Expansion Remains in Focus 

UBS had initiated coverage on Kalyan Jewellers earlier in September with the same ‘Buy’ rating and ₹900 target price. 

Its assessment pointed to the company’s development into a pan-India jewellery retailer and its franchise-owned, company-operated model as factors behind its store expansion. According to UBS, Kalyan Jewellers has been adding stores at nearly twice the pace of Titan. 

The company’s revenue recorded a compound annual growth rate of around 35% between FY22 and FY26, according to the brokerage. 

UBS expects revenue and earnings to grow at around 23% annually over the next five years, supported by continued expansion of the company’s network. 

The brokerage had also noted that Kalyan Jewellers’ shares had risen six-fold between FY22 and FY26. When UBS initiated coverage, the stock was trading at around 30 times estimated FY28 earnings, representing a roughly 45% discount to Titan. 

First-Quarter Profit Rises 32% 

Kalyan Jewellers had reported a 32% year-on-year rise in first-quarter net profit to ₹348.7 crore, compared with ₹264.1 crore in the corresponding period a year earlier. 

Revenue increased 45.7% to ₹10,588.9 crore from ₹7,268.5 crore. 

EBITDA rose 24.5% to ₹632.5 crore from ₹508 crore in the year-ago quarter. The EBITDA margin, however, declined to 6% from 7% during the same period last year. 

The stock’s gains on Tuesday came against a weak broader market, with investors responding to the brokerage’s latest assessment of the company’s second-half growth outlook, store expansion and gold savings schemes.