Kalyan Jewellers stock soars 18%, extends two-day rally to 24% after Citi's bullish call

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Shares of Kalyan Jewellers India surged nearly 18 percent in intraday trade on Thursday, extending their gains over the past two sessions to around 24 percent, and breaching a series of upper circuits. Investors continued to lap up the stock after brokerage Citigroup reiterated its bullish stance and projected that the shares could more than double from the levels seen before the recent rally.

The stock climbed as much as 17.6 percent to an intraday high of Rs 440, breaching a series of upper circuits during the session. It had gained 5.5 percent on Wednesday after Citi reaffirmed its Buy rating on Kalyan Jewellers and set a target price of Rs 750 per share. Even after the sharp two-day rally, the brokerage's target still implies meaningful upside from current levels.

The surge marks a sharp reversal in sentiment after Kalyan Jewellers shares had fallen nearly 7 percent on Tuesday following the company's April-June-quarter business update. Investors had initially reacted to the company's revenue growth coming in below some market expectations, despite healthy double-digit expansion across its businesses.

In its June-quarter update, Kalyan Jewellers reported consolidated revenue growth of approximately 38 percent year-on-year. Its India business also grew 38 percent, supported by a robust same-store sales growth (SSSG) of 28 percent.

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The company also reported strong traction across its other businesses. Its international operations grew around 35 percent year-on-year, with the Middle East business registering approximately 30 percent growth. International markets accounted for about 14 percent of consolidated revenue during the quarter.

Candere, Kalyan Jewellers' digital-first jewellery platform, remained the fastest-growing segment, with revenue surging 112 percent year-on-year. The company added 12 Kalyan showrooms and five Candere stores during the quarter, taking its total showroom network to 524 as of June 30. Management also said the company entered the second quarter on a positive note ahead of the festive and wedding season.

Despite describing the June-quarter revenue growth as being below its estimates, Citi maintained its positive long-term view on the company. The brokerage believes Kalyan Jewellers' franchise-led expansion strategy will continue to drive network growth while improving return on capital employed (RoCE), given the lower capital intensity of the model.

The brokerage also highlighted Candere's strong growth momentum as an important positive for the company's long-term expansion strategy.

The stock's recent volatility has also reflected comparisons with larger rival Titan. While Kalyan Jewellers delivered 38 percent revenue growth in India during the quarter, Titan reported 41 percent growth in its overall consumer business, led by 39 percent growth in its jewellery business. Titan's international business also expanded at a faster pace, more than doubling from a year earlier.

At Thursday's intraday high of Rs 440, Kalyan Jewellers' market capitalisation stood at around Rs 44,850 crore. Despite the recent rebound, the stock remains down about 10.6 percent so far in 2026, compared with an 8.1 percent decline in the Nifty 50.