Kalyan Jewellers shares rise after target price reassessment

Kalyan Jewellers' stock price increased by 3.6% to Rs 484 after ICICI Securities reaffirmed a positive outlook on the company. The brokerage set a target price of Rs 520, suggesting a further 7% increase could be expected. ICICI Securities noted strong demand during the wedding season and ambitious expansion plans as key factors for growth. Despite rising gold prices and competition, Kalyan Jewellers has maintained a solid growth trend. The company reported a 35% increase in revenue over the past nine months, outpacing its main competitor, Titan. Kalyan Jewellers is also focusing on expanding its Candere brand, appealing to younger consumers. The company plans to open around 90 new showrooms each year for the next two years. In the first nine months of the fiscal year, it added 49 stores and plans to open more Kalyan and Candere outlets soon. However, the rise in interest rates on gold metal loans could affect costs in the short term. Management is confident that these higher rates are temporary and expects to reduce debt significantly by fiscal 2026. Although Kalyan Jewellers’ shares have fluctuated recently, they have increased by about 31% over the past year. According to ICICI Securities, if the stock reaches the target price, it would be valued at 33 times its expected earnings for the fiscal year ending March 2027.