Buy Kalyan Jewellers; target of Rs 650: Motilal Oswal

Motilal Oswal's research report on Kalyan Jewellers

Kalyan’s consolidated revenue grew 27% YoY to INR55.3b (in line) in 1QFY25. India business posted 29% YoY revenue growth, driven by store additions and 12% same-store sales growth (SSSG). Despite higher gold inflation impacting many jewelry brands and leading to weaker growth metrics, Kalyan delivered strong SSSG. This success was supported by a continued focus on new customer acquisition (35% share of new customers in 1Q) and improvement in studded jewelry share (to 30% from 29% in 1QFY24).

Outlook

With industry-leading growth, we expect rich valuations to sustain. We reiterate BUY with a TP of INR650 (based on 55x Jun’26 P/E, earlier 50x).