Mumbai: Shares of Kalyan Jewellers surged nearly 13 per cent on Thursday, extending gains from the previous trading session after global brokerage Citi reaffirmed its bullish outlook following the company’s strong first-quarter business update.

The stock climbed as much as 12.8 per cent to ₹422.30 before trading over 11 per cent higher during the morning session, outperforming the broader market.

Citi sees nearly 97% upside

Citi maintained its ‘Buy’ rating on Kalyan Jewellers and retained a target price of ₹750 per share, implying a potential upside of around 97 per cent from the stock’s opening price on Thursday.

The brokerage believes the company’s franchise-led expansion strategy will continue to support strong revenue growth, improve return on capital employed (RoCE) and help reduce debt over time.

Strong Q1 business performance

In its quarterly business update, Kalyan Jewellers reported approximately 38 per cent year-on-year consolidated revenue growth for the April-June quarter.

The growth was driven by robust performance in India, where same-store sales increased by 28 per cent across key markets. However, the revenue growth was slightly below Citi’s estimate of 45 per cent.

International operations recorded around 35 per cent revenue growth, with the Middle East business growing approximately 30 per cent despite geopolitical tensions in the region.

The company’s digital jewellery platform, Candere, posted an impressive 112 per cent year-on-year revenue growth during the quarter.

Expansion remains a key focus

During the quarter, Kalyan Jewellers opened 12 new showrooms across India, while Candere added five new outlets, strengthening the company’s retail footprint.

Despite the positive outlook, Citi highlighted potential risks, including slowing domestic demand, delayed balance sheet deleveraging and the possibility of India’s revenue growth trailing rival Titan for the first time in 13 quarters.

Analysts believe investors will continue monitoring the company’s expansion strategy and consumer demand trends as the jewellery sector enters the festive season