HSBC has maintained a ‘Buy’ recommendation on Kalyan Jewellers, and revised upward its stock price target to ₹810 from ₹600 per share earlier, factoring in the higher network expansion.
The price target ascribed by HSBC, implies a potential upside of nearly 23% from Wednesday’s closing levels.
The brokerage wrote in its note that the stock has risen 8 times in the past two years, adding that it is still midway into its value creation journey
HSBC sees clear potential for Kalyan Jewellers to quadruple its store count by the end of the decade, driven by their capital-light expansion strategy. The ongoing exponential growth is expected to prevent any de-rating of the stock’s valuation multiple.
The foreign brokerage has also highlighted several long-term growth catalysts, noting that Titan’s expansion journey is a useful guide for tracking long term growth catalysts.
Currently, Kalyan trades at an estimated FY26 PE ratio of 56 times, approximately a 10% discount compared to Titan. This valuation is particularly appealing if pitted against other consumer sector opportunities.
Last month on August 22, Kalyan Jewellers India promoter Trikkur Sitarama Iyer Kalyanaraman bought a 2.36% stake from global private equity major Warburg Pincus.
Kalyan Jewellers India is into manufacture and sale of gems and jewellery. It has operations in India and overseas.
Shares of Kalyan Jewellers India Ltd. are currently trading 2.44% higher on the NSE at ₹672.55. The stock has rallied over 85% so far this year.