Kalyan Jewellers India Ltd. has once again emerged as one of the hottest stocks in the jewellery space after a combination of strong operational performance, marquee institutional buying and a bullish brokerage call rekindled investor interest. The stock has already surged about 45% over the past month and has delivered a staggering over 500% return in the last five years, reaffirming its status as one of the market’s multibaggers.
BofA Makes a ₹385-Crore Investment
Adding to the optimism, BofA Securities Europe SA recently acquired 81.82 lakh shares, representing 0.79% equity, at an average price of ₹470.95 per share. The transaction, valued at approximately ₹385.33 crore, has been viewed by market participants as a strong vote of confidence in the company’s long-term prospects.
Large institutional purchases by global investors often act as positive sentiment triggers, particularly when they coincide with improving business fundamentals.
Citi Turns Bullish, Sees Sharp Upside
Global brokerage Citi has issued a ‘Buy’ recommendation on Kalyan Jewellers with a target price of ₹750. The target implies significant upside from recent trading levels and has sparked renewed buying interest in the counter.
Market participants believe the brokerage’s positive stance, backed by improving operating metrics, could continue attracting institutional as well as retail investors. Some traders even expect heightened buying momentum in the near term as investors reposition themselves following the brokerage upgrade.
Strong Start to FY2027
The bullish outlook follows an encouraging operational update for the first quarter of FY2027.
The company reported 38% year-on-year growth during the quarter, reflecting healthy consumer demand despite elevated gold prices. Kalyan Jewellers also continued its aggressive retail expansion strategy by opening 17 new stores during the quarter, including 12 Kalyan Jewellers showrooms and five Candere outlets across India.
The rapid expansion is expected to strengthen the company’s market presence and support revenue growth in the coming quarters.
High Gold Prices Remain a Challenge
While the latest quarterly update has impressed investors, the jewellery industry continues to face headwinds from persistently high gold prices. Elevated prices can affect consumer affordability and lead to postponement of discretionary jewellery purchases, particularly in the mass market.
These concerns had weighed on investor sentiment over the past year, causing the stock to underperform for a period despite the company’s long-term growth story remaining intact.
However, analysts believe organised jewellery retailers such as Kalyan Jewellers are better positioned than unorganised players to navigate such challenging conditions because of their strong brands, extensive retail networks and increasing market share.
Mutual Funds Continue to Back the Story
Domestic institutional investors also remain optimistic. Motilal Oswal Midcap Fund is among the company’s largest shareholders, holding approximately 9.38% of the equity.
Strong institutional ownership is generally viewed as a sign of confidence in a company’s governance standards, execution capabilities and long-term earnings potential.
Outlook
Kalyan Jewellers appears to be regaining momentum after a period of consolidation. Robust revenue growth, continued store expansion, fresh buying by a leading global institutional investor and Citi’s optimistic target price have collectively strengthened the investment narrative.
Nevertheless, investors should remember that brokerage target prices are estimates rather than guarantees. Future performance will depend on factors such as consumer demand, movements in gold prices, competitive intensity and the company’s ability to sustain its growth trajectory.
With strong institutional backing and improving business momentum, Kalyan Jewellers has once again become a closely watched stock in the organised jewellery sector, and the coming quarters will determine whether it can translate the current optimism into sustained earnings growth.
